Price of oil falls but drivers are STILL shelling out at pump

Petrol stations have been accused of exploiting motorists by failing to pass on the recent fall in the cost of oil.

Fuel prices have surged to their highest in almost four years, with drivers hit with the biggest monthly hike in petrol for 18 years in May.

The average price of petrol has gone up to 129.51p per litre and the average price of diesel to 132.43p.

But the amount retailers pay for fuel has been falling for more than two weeks. Oil has dipped from $80 a barrel to close to $75. 

Petrol stations have been accused of exploiting motorists by failing to pass on the recent fall in the cost of oil

Wholesale petrol has dropped from 44.2p a litre to around 41.4p and diesel costs have fallen from just over 46p to just under 43p.

The AA said two weeks was enough time for prices to have started falling and called for a drop of at least 2p a litre.

Spokesman Luke Bosdet said fuel retailers, including motorway service stations, had engaged in ‘particularly exploitative pump pricing’.

He also said that fuel retailers have ‘talked up’ the price of fuel, with the Petrol Retailers Association recently warning that petrol and diesel prices could hit record levels of 142p and 148p respectively if oil hits $100 a barrel.

Mr Bosdet said: ‘The retailers talked up the price of fuel a month ago, piling on misery at the pump as fast as they could. Now that wholesale costs have crashed, their silence is deafening – replaced by the shouts of drivers who know they are being ripped off’.

Oil prices have generally been rising as the OPEC oil producing cartel has deliberately cut supply

Oil prices have generally been rising as the OPEC oil producing cartel has deliberately cut supply

Motorway service stations are already facing an official probe into rip-off fuel prices, which typically charge more than £8 more for a tank.

Transport secretary Chris Grayling wrote to competition watchdogs in March to ask for an investigation.

Oil prices have generally been rising as the OPEC oil producing cartel has deliberately cut supply.

Donald Trump’s decision to pull out of the Iran nuclear deal and impose sanctions has added to concerns about supply as the country is a major oil producer.

But more recently, increased US production, economic uncertainty and suggestions that OPEC may allow more oil to flow has recently helped to move the oil price into reverse.   



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