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No ‘logical or fair correlation’ on fuel prices, says FairFuelUK

FairFuelUK has accused the Government of putting oil and fuel supply chain company profits above protecting consumer prices at the pumps as it indicates that pump prices do not match wholesale trends.

pump

The campaign suggests pump prices across the UK are influenced more by supermarkets than changes in oil prices.

The campaign has released what it says is overwhelming confirmation that the Government is choosing to ignore the pricing evidence and the need for a pump pricing watchdog.

According to FairFuelUK, fuel prices in recent weeks show that fuel supply wholesalers not passing on oil market changes to retailers in full.

Detailed analysis of pump pricing data between 13 October and 15 November shows average pump prices increased 2.32% while wholesale prices fell 3.36%.

And although FairFuelUK says the Department for Business, Energy and Industrial Strategy has told it that both rises and falls in crude oil price reach the pumps within seven weeks, it points to a 1.55% fall in the wholesale price seven weeks earlier (15 August to 27 September).

In response, FairFuel UK says: There is no logical or fair correlation between oil prices, wholesale prices or what we pay at the pumps as the Government claims.

Instead, the campaign suggests pump prices across the UK are influenced more by supermarkets than changes in oil prices, adding that when wholesale prices rose in mid-November the only reason pump prices fell a little was down the massive influence of supermarkets with their 3p per litre cut. When supermarkets put 3p back onto prices in December, pump prices rose again despite falling wholesale prices.

Quentin Willson from FairFuelUK said: “The Government insists that falls in crude oil price reach the pumps within seven weeks’, so why does the retail price line go up when the wholesale line falls? The two lines are supposed to follow each other and not go in opposing directions. Ministers and civil servants arent seeing what every driver in the UK sees daily. Falls in the price of oil arent being passed onto consumers either quickly or fairly. This evidence proves conclusively that we need PumpWatch.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.