We were told that petrol prices would soar if the UK voted to leave the EU. Concerned 'experts' cited the combined threats of currency shifts, rises in the price of oil and a general economic Armageddon. But oil and fuel wholesale costs have actually fallen since the 23rd of June by 3 to 4 ppl. Prices at the pump should therefore be lower by 3p but they're not - and the only reason we at FairFuelUK can find to justify this is speculation driven by a cloak of supposed market uncertainty.
Petrol particularly is being held at artificially high levels given that the wholesale price has fallen faster than diesel since the outcome of the Referendum. Retailers say that this higher than expected price point is due to volatility of exchange rates and oil price rises but this clearly isn't the case. Sterling is up and oil is down and, as usual, the opacity of the fuel pricing market continues unchecked. We're deeply concerned that that over the last 18 months when Sterling has been at the same level, prices at the pumps have ranged between 109ppl to 117ppl. There's no reason we know that there should be as much as 8ppl disparity at the pumps when oil has been hovering at the same price for all that time.
Quentin Willson, Lead FairFuelUK Campaigner said: "When the government and businesses are calling for stability and transparent pricing to prevent a recession driven by confusion and uncertainty this is exactly the sort of retailing opportunism that we abhor. Our analysis speaks for itself - the UK is paying more than it should be for road fuels with prices being held deliberately high. We believe that at this sensitive time this situation is totally unacceptable.”
Howard Cox, Founder of FairFuelUK said: "Every driver knows fuel retailers have constantly manipulated pump prices for maximum profit hiding behind the vagaries of oil speculation. But now that oil is lower and more stable than in previous years, they’ve decided to use the political uncertainty of project fear to keep pump prices higher than necessary. It stinks and we call on the Government to investigate immediately and make the pricing process at the pumps fully transparent AND fair.”
Rob Flello Labour MP, Transport Select Committee member and Chair of the Freight Transport Parliamentary Group said: "Motorists and professional drivers continue to be ripped off by an industry that hides the true costs of producing our fuels. The new Prime Minister has the chance to end this disgrace. Of course the fuel industry could voluntarily stop profiteering, but without government intervention there's no sign of that happening."
Jason McCartney Conservative MP, Chair of the Fair Fuel
APPG said: "This increased profit comes out of the pockets of
motorists when pump prices remain inflexibly high, despite crude oil prices
falling or in particular in this case, post Brexit lower wholesale prices not
being matched at the pumps. I have called for this repeatedly, we need more
transparency in the pump pricing process and we need it now!”
Data supplied by RAC Foundation and Portland Fuel Pricing - Image of table data download here