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UK petrol retailers warn of further price hikes across refueling pumps

UK petrol retailers warn of further price hikes across refueling pumps
UK petrol retailers warn of further price hikes across refueling pumps

A UK-based motoring group has reportedly accused the UK petrol retailers of taking a larger profit after the later warned that there may be further price hikes across refueling pumps in the coming days.

The Petrol Retailers Association (PRA), which rose to public prominence in September as the sector dealt with delivery issues that caused weeks of panic purchasing in parts of England, blamed the crisis on increased wholesale pricing.

According to the group, which represents around two-thirds of forecourts throughout the UK, it is almost certain that the pump rates of 148 pence per liter (ppl) for diesel and 142ppl for petrol that were set back in April of 2012 would be eclipsed by the end of October.

Brian Madderson, PRA's outgoing chairman, stated that the major cause is the continuous climb in crude oil prices, which recently reached $85 per barrel for Brent crude.

According to Madderson, this includes a more than 50% rise since January 2021, owing to a reduction in output from OPEC nations and Russia at a time when global economies are undertaking rapid economic recovery strategies to get them out of the coronavirus pandemic slump.

Madderson pointed to the most recent Experian Catalyst data, which revealed average petrol prices of 141.35ppl and 144.84ppl on Tuesday (19th Oct), and cautioned about growing pump prices as market talks speculation that Brent may reach $100/barrel by Christmas.

Madderson went to add that present average pump rates throughout the UK are being cushioned by some of the country’s larger retailers who typically benefit due to 4-week lag to their supplied fuel rates.

In recent weeks, motoring industry groups have indicated that growing costs were the result of profiteering as much as market factors.

In response to the PRA's warning, RAC fuel spokesperson Simon Williams stated that the bioethanol constituent of unleaded has grown from 5% to 10% with the release of E10 in September, and tragically, that prices are even higher than petrol on the wholesale market.

In the forthcoming months, economists believe that wider energy prizes; particularly for home electricity and gas, would make the hardest squeeze on family finances.

Source credit: https://news.sky.com/story/petrol-retailers-warn-of-record-prices-at-the-pumps-within-days-12439201

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.