Warning over petrol price rise

The Petrol Retailers Association (PRA) have warned of an impending petrol price hike on the forecourt. The price of Brent Crude has increased by 10% in the last two weeks to $116 a barrel.

Latest ITV News reports

The AA: 'Drivers cutting back doesn't stop price rises'

Once upon a time, petrol prices would rise heading into the summer, due to higher demand for the motoring season, and then fall away late summer onwards.

These days, demand appears to be increasingly irrelevant – it doesn’t matter how much drivers cut back, the commodity markets always seem to find a reason for pumping up oil and wholesale prices.

– Paul Watters, Head of AA public affairs

Advertisement

Petrol Retailers Association warn tax rises could harm economic recovery

The Petrol Retailers Association (PRA) have said that they are "very concerned" about Government plans to implement the deferred increase in petrol tax in January,

They claim that together with a second increase in April 2013 could lead to increase in prices at the pumps of 7p in the first few months of the New Year.

Going on from that in a statement the PRA said:

Should there not be any downward correction to oil prices this Autumn, the likelihood of paying 145 -150ppl for petrol in early 2013 could return. This could damage our economic recovery and hit the Bank of England’s hopes for reducing inflation levels. Increasing fuel prices particularly impact the rural economies, low income earners and small businesses.

The AA costs up the price of a tank

The AA have released the following figures to illustrate the changes in prices at the pump:

Monthly petrol cost for two-car family:

  • Now - £287.76
  • Record high - £302.54
  • Summer low - £277.76

Cost of 50-litre petrol refill:

  • Now (135.52p/ltr) - £67.76
  • Record high (16 April – 142.48p/ltr) - £71.24
  • Summer low (1 July – 130.81p/ltr) - £65.41

The AA: '£10 added to petrol cost in six weeks'

Paul Watters, the AA’s head of Public Affairs on the rising cost of petrol:

Falling pump prices in the UK lasted just 75 days and now they’re heading up at a rate which once again threatens to undermine the Bank of England’s inflation target. In six weeks, £10 has been added to the monthly petrol costs of a two-car family in the UK.

The AA: "Rising petrol prices could stoke inflation rises"

The AA has said that the 2.5% price rises seen on forecourts recently, "risks putting road fuel costs back on the path that led to six weeks of record fuel prices earlier this year."

The motoring organisation went on to say that after July’s surprise increase in inflation, "the new surge in pump prices will stoke the rise further and potentially any increase in fuel duty."

Advertisement

Warning over rising cost of petrol

The Petrol Retailers Association (PRA) have warned of an impending price hike on the forecourt. Brian Madderson, PRA Chairman said:

This is really bad news for motorists and retailers alike. The full effect of the wholesale price increase of nearly 10pence per litre (ppl) since late June has yet to be passed on at the pumps. Average pricing for petrol across the UK has now risen to 136ppl and could yet return to 140ppl by the end of August. This will affect the many families that have planned to take a post-Olympic holiday.