Petrol prices set to rise

Petrol prices are expected to rise by 4 pence a litre in the next few days as retailers pass on increased wholesale costs to motorists, according to reports.

Office of Fair Trading to review fuel prices

Petrol pump.
The Office of Fair Trading will release their review next week, and may launch a full investigation. Credit: Press Association

The Office of Fair Trading (OFT) is due to release a review into whether reductions in the price of crude oil are being passed on to motorists.

The OFT will then decide whether to launch a full investigation into fuel prices.

Edmund King, president of the AA said it was time the OFT investigated the fuel industry:

"The Office of Fair Trading decides soon whether to launch an investigation into fuel prices, hopefully tackling the fuel industry's treatment of drivers, consumers and businesses."

Brian Madderson, from the Petrol Retailers Association (PRA), called on the OFT to launch an investigation into the wholesale market rather than target petrol stations.

Market speculators 'to blame for petrol price rises'

Gold market graph stock
Gold market graph stock. The PRA say the hike in prices is due to stock market speculation Credit: Press Association

Fuel retailers have blamed "speculation" by stock market traders for the increasing wholesale costs of petrol and diesel.

The Petrol Retailers Association (PRA) said the hike in costs due to hit motorists in the next few days was due to an "unexplained leap" in wholesale prices of 5p a litre since Christmas. Chairman Brian Madderson said:

"We cannot explain to our customers why the wholesale price is going up so much - it is not due to Government tax, it is not due to Brent crude going up and it is not due to the weak currency exchange.

"So are traders, bankers or speculators taking British motorists for a ride?"

"Motorists will understand that, in this winter weather, demand for petrol in this country has been at a low ebb. If there is no massive demand, why have wholesale costs been ramped up by nearly 5p a litre?"

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AA hits out at planned petrol price rises

The AA have attacked the fuel industry over plans to increase petrol prices by up to 4 pence a litre, due to increases in wholesale prices.

The AA said the industry failed to pass on a 2p fall in diesel wholesale costs in November and December last year. Edmund King, the AA's president said:

Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings.

The insight we are now getting on wholesale price movements rams home the need for this information to be out in the public domain immediately.

Petrol prices 'to rise by 4 pence a litre'

Wholesc Credit: Press Association

Petrol prices are expected to rise by 4 pence a litre in the next few days as retailers pass on increased wholesale costs to motorists, the Telegraph reports.

The rise has been forecast by the Petrol Retailers Association (PRA), who said wholesale prices had risen by five pence a litre since Christmas. Brian Madderson, chairman of the PRA, said:

"Independent retailers have been soaking up this increase at the expense of already tight margins because they know how hard the motorist is squeezed. But the floodgates will have to open soon."

The AA, which has forecast a smaller rise of 2.5 pence a litre, accused the industry of failing to pass on recent falls in wholesale prices to motorists as quickly as increases. Edmund King, president of the AA, said:

"Wholesale petrol prices turned upward in the first week of January, average pump prices six days later. If falls in wholesale were reflected as quickly, no one would mind, but they’re not."