EU probes petrol prices rip off

Publication date: 09 March 2009

EU probes petrol prices rip off

 
BRITAIN’S petrol price  rip-off which has hit millions of motorists  is  to be  the  focus of a European investigation. Drivers have suffered a  five per cent  leap in pump prices  in just over a month despite a fall in oil costs.Yesterday the average pump price was 90.68p a litre for unleaded and 100.35p for diesel, up from
85.89p and 98.06p in January.

 
The  last  time  unleaded was  90p  a  litre was when  oil was  selling  for  68  dollars  a  barrel.  It  now stands at 45. The European Commission will examine concerns  that motorists are not  feeling  the  full benefit of falling wholesale costs. It  will  look  at  pricing  at  the  various  stages  of  the  fuel  supply  chain  from  refining  and wholesale through to the petrol station.Competition Commissioner Neelie Kroes said that Brussels was  ready to act quickly  to stamp out anti-competitive behaviour in the fuel markets and protect consumers.

 
Yesterday  motoring  group  the  AA  said  angry  drivers  do  not  understand  why  petrol  is  still  so expensive.“Drivers are most definitely worried  they are being  ripped off. It  just doesn’t make sense  to  them that fuel prices have gone up as fast as they did since the beginning of this year,” AA spokesman Luke Bosdet said.“There is no way of being able to tell whether or not the price increases fully reflect what has been happening on the wholesale market.”
 
The  study  follows  complaints  to  Brussels  by  the  Federation  Internationale  de  l’Automobile,  an umbrella group for European motoring groups including the AA and the RAC. RAC motoring strategist Adrian Tink welcomed the attempt to shed light on petrol prices.

 
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“Over  the  last six  to nine months motorists have heard  lots of different  reasons why petrol prices have either gone up or down,” he said. “Anything  that  gives  transparency  to  what  we  pay  at  the  pumps  is  good  news  because  your average motorist doesn’t know what to believe.” Brussels officials will get the results of the independent study in June.
 
Petrol retailers have blamed the pound’s recent slide against the dollar for the post-Christmas price hikes and the time taken for crude oil costs to feed through the system.

Source: Daily News