In the last 12 months, pump prices have increased by over 20p for diesel and petrol 22p largely down to 76% sterling increase in oil. But this hides the ongoing Covid opportunistic profiteering in the fuel supply chain during lockdown, compared to average figures in the 12 months before lockdown, argues FairfuelUK.
In a statement they say, “In the lockdown when oil fell 37.39% in Sterling compared to the 12 months before Lockdown, wholesale diesel fell by 13.7% and pump prices fell by just 10.06% giving rise to 25.71% increase in fuel supply chain profits. Average filling up profits for diesel rose from 12.2p per litre to 15.3p
“Meanwhile, wholesale petrol fell by 14.29% and pump prices fell by just 9.68% giving rise to a staggering 48.40% increase in fuel supply chain profits. Average filling up profits for petrol rose from 9.3 per litre to 13.8p.”
Comments Howard Cox, Founder of FairFuelUK: “It is worse than stomach-churning that the fuel supply chain has knowingly used Covid to rip off UK’s 37m drivers. To exploit a national crisis and screw the world’s highest taxed drivers, to line their pockets is scandalous. For decades, wholesalers have ripped off drivers at will, but this time they have reached a new low.
“Don’t blame the small independent garages who have suffered significantly with lack of forecourt trade, it’s those greedy faceless unchecked businesses further up the fuel supply chain that must be subject to Government scrutiny.
“When oil prices rise and fall, millions of drivers have absolutely no idea what they will subsequently pay at the pumps. It is never, ever the same price! FairFuelUK renews the Fair Fuel APPG for Motorists and Hauliers 2019 unfulfilled call for the introduction of an independent Pump Pricing watchdog. It is vital that such a body is endorsed by the Government, with petrol, diesel and Autogas wholesale prices movements made transparent and published daily.”
FairFuelUK predicts oil will continue to rise and could potentially hit $75 a barrel in the next month because of the demand for oil increasing as the world comes out of lockdowns, global businesses are freed to work normally, and staff start to drive again.
Much will depend on how Opec+ manages demand in order keep supply prices high as they crave for. Once commercial normality in the western world returns, oil prices will settle, we believe, at about $65 for the remainder of 2021. The prospect of more Iranian oil coming is also going to slow down further big oil increases as they inject more supply into the market.