Petrol/Diesel 10p -14p Higher than Necessary

Speculators and Fuel Supply Chain, and even the Treasury Profiteering out of a Crisis

Even considering exchange rate changes since 2014 when the dollar price for a barrel of Brent Oil was similar to current prices, diesel and petrol are 10p to 14p per litre HIGHER NOW than necessary

• With Brent Oil now exceeding $110 per barrel (9.40am March2), pump prices (notably diesel) will rocket, totally unchecked, to £1.60 per litre in a matter of weeks. Long term expert predictions are not discounting £1.80 per litre in a matter of months.
• Because of these punitive pump prices, the Government are enjoying an annualized VAT windfall in excess of £2bn
• Robert Halfon MP, Craig Mackinlay MP with FairFuelUK continue to call for the Government to check the profiteering in a time of cost of living and national economic crisis by implementing PumpWatch. An independent pump pricing watchdog.
• Robert Halfon MP and Howard Cox (founder of FairFuelUK) call for an immediate cut in Fuel Duty.

Robert Halfon MP. Vice Chair of the Fair Fuel APPG said: “Record fuel prices are just un-affordable and are having a huge impact on inflation. The Government need to look at either reducing VAT on fuel or reducing fuel duty. We also need a FairFuelUK Pumpwatch monitor to ensure that prices are in line with wholesale oil prices.”

Howard Cox, Founder of FairFuelUK said: “The sickening hold the fuel supply chain has over pump prices is more than perverse, it’s tantamount to being criminal. Why is Rishi Sunak, and he knows this full well, not acting to check the uncontrolled profiteering that is damaging the economy, the highest taxed drivers in the world and fueling inflation. Why is he scared of introducing PumpWatch. Surely it cant be, because of the gargantuan pile of VAT the Treasury gets due to the punishing costs of filling up at the pumps.”

Craig Mackinlay MP. Chair of the Fair Fuel APPG: “A PumpWatch monitor similar to Ofwat or Ofgem could ensure that reductions in oil prices are properly passed on to motorists at the fuel pump. It is unjustifiable that motorists continue to be over-charged for their fuel during a period of rapidly rising inflation across the board. HM Treasury could also help by using the VAT windfall being derived from high current pump prices. The cost-of-living crisis is already proving incredibly painful for many and sanity needs be restored to petrol pricing as quickly as possible.”

Background to data claims:

• From the Government’s own website for weekly pump prices, in September 2014 the petrol price was recorded at £1.28 per litre.
• Brent Oil was recorded in September 2014 at $100 per barrel or £62.11 in UK Sterling.
• Removing the 2014 Fuel Duty and VAT taxes, the fuel supply chain price net of all taxes price in September 2014 was 48.72p per litre.
• This means the Fuel Supply Chain price difference today against 2014 prices net of all taxes means petrol prices today are averaging 20p more per litre.
• When the dollar exchange rate is considered for the price of Brent Oil today, sterling is 25% weaker and therefore this weakness in currencies has to be compensated in the wholesale/retail price of petrol today.
• As a result the modified Fuel Supply Chain price difference today against 2014 prices net of all taxes means petrol prices today are averaging 8p more per litre. That is the extra the commercial component of the price of filling up with petrol is costing drivers today. Private Business Profiteering!
• But even worse for UK’s 37m drivers once all taxes (Fuel Duty and VAT) are restored back into these calculations, this means drivers using petrol are paying an eye-watering 14p more per litre at the pumps.
• For the driver of the Average family car that is an eye watering £7.70 more that is honest or fair