UK Motorists not Gaining From Drop in oil Prices

Cash-strapped UK drivers have seen virtually no benefit from the recent drop in the price of crude oil - according to the AA.

 

The organisation says the 7% decline of the British pound against the U.S. dollar over the last month has denied motorists a 2p per litre price reduction.

 

Prices of both petrol and diesel decreased by around 1.5p per litre in August, but have since climbed again to bring them within a fraction of the record prices we saw in May.  During the same period the market price of crude oil dropped by more than 10% in dollar terms.

 

The cost of diesel is currently 139.62p, and that of petrol 135.61p.  This means we have seen none of the downward move in fuel prices that is normal when we approach the winter season.

 

Edmund King, the President of the AA, also pointed to the fact that Brent Crude was about ten dollars per barrel more expensive that the light crude oil bought by the Americans, something that could potentially mean a 5p per litre price reduction to UK drivers.

 

King added: "Current fuel prices would be worse were it not for UK supermarkets' traditional lag in passing on higher wholesale costs."

 

The fuel industry responded by saying that up to 70% of the price at the pump is accounted for by VAT, fuel duties, delivery costs, marketing costs and profit margins.

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