Cost of petrol set to rise by up to 5p a litre as stations pass on increase in wholesale prices
1p of rise in wholesale prices has been passed on at many petrol stationsRetailers insist they are not to blame for the 5p price riseAA attacked fuel industry for failing to pass on 2p fall in diesel wholesale costs that was worth 2.5p at the pump
01:59 GMT, 25 January 2013
02:00 GMT, 25 January 2013
Motorists are facing more pain at the pumps, with increases of up to 5p a litre, the AA warned.
Already 1p of the rise in wholesale prices has been passed on at many petrol stations – leaving another 4p to come.
The AA blames wholesalers and speculators for the impending rises, which come after more than three months of falling fuel costs.
Pain at the pumps: The AA has warned of increases of up to 5p a litre. Already 1p of the rise has been passed on at many stations
Retailers insist they are not to blame for the 5p rise.
They say they have been ‘soaking up’ increases at a cost to their own profit margins so far but now the pressure to pass on the bill to drivers is irresistible.
The AA also attacked the fuel industry
for failing to pass on all of a 2p fall in diesel wholesale costs in
November and December that, with VAT, was worth 2.5p at the pump.
This comes ahead of the publication at
the end of the month of the findings by the Office for Fair Trading
into whether reductions in the price of crude oil are being passed on to
Retailers say they have been 'soaking up' increases at a cost to their own profit margins so far
In its latest price report the AA said a rise of 0.75p since the New Year left average prices at 132.71p a litre.
Diesel is marginally cheaper than a month ago, falling by a third of a penny in the third week of December and remaining around 140p per litre throughout Christmas and early January.
But the average of 140.32p a litre, compared to 140.38p in mid-December means a litre of diesel has been on average 8p a litre more expensive than petrol, compared with a 5p difference in the summer, something the AA blames on the drop in wholesale costs not being passed on.
Between late November and early December, the AA said, the cost of diesel to retailers fell from around 53p a litre to below 51p, but the average pump price only fell from 141.5p to 140p a litre.