Petrol Prices On The Rise!
Petrol prices have started to rise again after weeks of it falling in price.
According to the latest analysis by the AA drivers were paying 132.28 pence a litre for unleaded on Tuesday, compared with 130.81 pence on July 1.
Although during the same time the price of diesel has risen not fallen. Those owning diesel cars has seen the price over the same period rise from 136.12 a litre to 137.33 pence.
Underpinning the rise has been an increase in the cost of crude oil, which has increased from $90 a barrel in mid-June to $104 yesterday.
The increase in crude oil prices has been explained by continuing political uncertainty in the Middle East, some shortages because of a strike in the Norwegian oilfields and some market speculation.
A sharp rise in the wholesale price of petrol when it leaves the refinery has been the main cause of the rise.
On June 26 it was selling from $920 a tonne, by July 5 the price burst through the $1000 a tonne barrier.
Luke Bosdet of the AA said: “the increase in the price of crude oil, what dealers claim is in higher demand because of the US motoring season and the tighter supply following the closure of the Coryton refinery in Essex. All contribute to the sharp rise in the cost of petrol and diesel.
So if this is the case why then have petrol sales in the USA been falling and the Government assured motorists that surplus petrol production at other refineries meant that the loss of Coryton should have no impact on prices.
“Once again it looks as if motorists are falling victim to market speculators.”