Monday, January 25, 2016

Seeing prices of 8.43p per litre (46 cents per US Gallon) in Michigan is economically mind-boggling for the UK motorist to grasp or experience. At this undreamed of level, State and Federal Taxes aggregate to a more UK recognised tax take of 74%. But that is where any across the pond comparison stops. How the US fuel supply chain can make any money at this price is fantasy and almost perilous in terms of commercial viability. But such local price wars are fleeting and only show the difference in motoring culture between the UK and our cousins in the US. UK retailers are constrained by high taxation, fuel supply chain price control and supermarket dominance. 


Retail outlets in Michigan recently average 30p per litre ( where the fuel tax proportion drops to a hugely consumer attractive level of 21%. In the UK petrol prices are currently around £1.00, 240% more than our Cadillac colleagues pay at the pumps, and with VAT and Duty here in Blighty every driver gives 75% of their fill-up to the Chancellor.


There is a snowball’s chance in hell that such a Michigan turf price war will ever take place in the UK. Our fuel supply chain businesses and how they control pump pricing remains impenetrable and substantial. And that is why FairFuelUK, with its 1.2m supporters, is working as the secretariat to the All Party Parliamentary Group on Fair Fuel, to try and make sense as to when oil prices change, to determine the calculations they use to affect pump price variations. The Competition and Markets Authority threw out FairFuelUK’s extensive evidence of pricing manipulation back in 2014 and pump prices experts in the 1st pricing inquiry APPG in December 2015, chaired by Jason McCartney MP and vice chaired by Robert Flello MP, said that consumers simply imagine rocket and feather pricing (see extract at




Until there is real clarity in the pricing process at the pumps, consumers will never benefit fairly from raw commodity market changes. The Government seems disinclined to look at this issue seriously and disingenuously hide their largest fuel taxation rip off regimen in any EU state by bragging about falling oil prices benefitting consumers. They are indeed helping as FairFuelUK has proven for the last 5 years, but not speedily enough or by anyway the right amounts. 


FairFuelUK calls for an independent consumer run regulatory body such as ‘OfPump’ that ensures that 37m UK drivers get a fair deal at the pumps and to ensure that retailers make a decent and viable living too.


But the campaigns main objective remains - to see a 3p cut in fuel duty. Sign Up to Support

Please donate to help the fight for lower fuel prices and a better deal for drivers

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