A FairFuelUK extensive analysis of the trends in oil, wholesale and retail fuel prices in 2015 sourced from reputable organisations, Portland Fuel Pricing, Government Statistics and the RAC Foundation, explodes the myth that rocket and feather pricing at the pumps is circumstantial. From January 2015, Sterling oil prices have fallen by 23% in 2015, whereas diesel and petrol margins (net of all taxes) have increased substantially. The graph below demonstrates this unmistakably. See MP quote below “What these figures show is racketeering on a global scale”
- Quentin Willson, TV broadcaster, motoring journalist and lead campaigner for FairFuelUK said: ‘Our figures say it all. As the oil price has collapsed retailer margins have grown. The global falls in crude definitely aren’t being passed onto UK drivers fairly or quickly enough. And what’s even worse is the industry flatly denies this shameful opportunism.’
- Rob Flello, MP for Stoke on Trent South said: ‘What these figures show is racketeering on a global scale and it is the motorist and professional driver that is being ripped off. Serious questions need to be asked about how the wholesale market operates and why there is such a disparity in the profit margins between petrol and diesel. This reeks of a too-close relationship between oil producers, refiners and wholesalers which demands urgent investigation. If this happened in any other industry, I’m sure we would see Government taking action so why not now? How many times do I and others have to highlight this scandal before justice is done?’
- Jason McCartney, MP for Colne Valley said: “The FairFuelUK graph clearly demonstrates that profit margins for diesel and petrol are higher when the price of oil falls. This increased profit comes from the pockets of motorists when pump prices remain stubbornly high despite crude oil prices falls. We need more transparency in the pump pricing process and that was the aim of the December Inquiry session of the Fair Fuel for Motorists and Hauliers APPG.”
- Howard Cox, founder of the FairFuelUK Campaign said: ‘Osborne plans to hike fuel duty in the March Budget and fuel suppliers deliberately manoeuvre pump prices, especially diesel, for out-and-out profit even when the cost of the raw material is in continual decline. The perpetual unfair fleecing of UK’s 37m drivers looks set to go unheeded by the Competition and Market Authority and the Government despite this conclusive proof for them to act. It really is time to take this perennial issue seriously and help put in place reasonable taxation and trustworthy pricing at the pumps.’
More 2015 Facts about pump prices that go unseen but impact on 37m UK drivers:
- There were 20 weeks that diesel wholesale prices were lower than petrol but at the pumps retail diesel prices were lower for only 8 weeks
- Average retail profit for petrol per litre was 5.64p with a max of 10.86p and a minimum of 1.62p
- Average retail profit for diesel per litre was 8.55p with a max of 12.51p and a minimum of 3.83p
- From January 2015 to December 2015 Sterling oil prices fell by 23%.
- Oil prices reached a maximum £44.45 per barrel and the minimum was 45% lower at £24.42
- A barrel of oil hit £32 five times in 2015 but average retail petrol pump prices on each occasion at this oil price was different changing a massive 9p from 106p to 115p and retail diesel prices also 9p from 109p to 118p. WHY is there such a huge range of different prices at the pumps at an identical oil price level?
- Throughout 2015, Asda retail prices were 3p lower per litre than average UK pump prices for both petrol and diesel. Without supermarket pricing pressure motorists would be paying even more.
- Portland Fuel Pricing for wholesale prices of petrol and diesel, oil prices and exchange rate
- https://www.gov.uk/government/statistical-data-sets/oil-and-petroleum-products-weekly-statistics%20 for weekly retail prices at the pumps
- RAC Foundation for weekly reatil prices at the pumps at http://www.racfoundation.org/data/uk-pump-prices-over-time
- Graph of story at http://www.fairfueluk.com/FairFuelUK_Campaign_Retail_profit_2015_against_oil.jpg
Raw data for graph is available at www.fairfueluk.com/FairFuelUK_Raw_data.xlsx