Fuel prices continue to rise despite wholesale savings
Fuel prices at the pump continue to rise over the last eight weeks, despite oil wholesale cost reductions and government claims that savings are reflected within seven weeks.
The FairFuelUK campaign says that wholesale diesel has fallen 1.3%, yet pump prices have increased 3.6% and consequently diesel retail profit (based on wholesale versus average pump prices) now amounts to an increase of 54.1%, to 17.85pence per litre.
Petrol prices follow a similar story, with an increase of 1.8% in wholesale costs, yet a rise of 6.4% at the pump – and a 116.7% profit increase for wholesalers.
FairFuelUK estimates £235m is being held back from consumers and the economy by businesses in the fuel supply chain.
The latest figures come just a week after the campaign reiterated its ongoing campaign, in which it is working with the Treasury and the Fair Fuel APPG to develop a PumpWatch Voluntary code to tackle fuel prices and ensure that wholesale costs are reflected at the pump fairly, accurately and quickly to drivers.
Howard Cox, founder of the FairFuelUK Campaign and secretary to the Fair Fuel APPG said: “Everyone knows what we pay at the pumps does not follow any logic or fairness when oil prices change. For decades the fuel supply chain, notably a few wholesalers, have ripped off drivers at will. The smaller independent garages are subject to their blackmail too, in the prices they are forced to pay, with their wholesalers holding them hostage to their bulk supply. They consciously hold back wholesale price falls amounting to billions. But these greedy faceless businesses will soon be subject to scrutiny.”
Details of the PumpWatch Voluntary Pump Pricing Code will be presented to the Treasury, as agreed to the Exchequer secretary, before the end of June.
“It is vital that this new PumpWatch voluntary code is endorsed and supported by the Government, with petrol, diesel and autogas wholesale prices movements published daily,” Cox continued.