Petrol stations 'not profiteering' - Petrol Retailers Association

The petrol industry is not profiteering during the current spike in fuel prices, according to the Petrol Retailers Association (PRA), which represents the industry.

Rising fuel prices across the world and high levels of fuel tax are to blame, according to Ray Holloway, Director of the RMI’s PRA.

"The price of petrol at the pump is influenced by more than just the price of crude oil, so recent claims that forecourt retailers are not reducing the price of fuel at the pump fast enough to match the drop in the crude price are laughable," said Holloway.

"There are complex pricing mechanisms that affect the value of crude oil, and once it has been refined into fuel and is in the supply chain, a number of differing commercial agreements between supplier and retailer affect it again. The recent comments made on retail pricing and profitability ignore these additional commercial pressures.

"The UK’s fuel would be among the cheapest in Europe, if Government taxes were reduced to levels comparable to those borne by our continental neighbours.

"Retailers must keep prices as low as they can, while facing fixed operating costs. They work in a challenging business area, with high costs and very low returns. Most are kept afloat by the shop attached to their site.

"Around 400 filling stations shut down across the UK every year, and motorists are now noticing gaps in fuel availability. Since the fuel protests in 2000, one third of the filling stations open at the time have disappeared.

"Retailers always sell fuel at the most competitive price they can manage, and will pass on any savings to the motorist as soon as possible. It is in their interest to do so."

Holloway was responding to criticism of petrol stations for not cutting prices in line with falling oil prices.

AA president Edmund King has claimed that every $2 dip in the global oil price should see a 1p a litre cut at the pumps.

"By our reckoning that means pump prices are still about 10p a litre over-priced," said King.

"The oil price drop equated to about 15p off pump prices since mid-July. But we've seen less than 5p come off the price.

"That's a rip-off. Motorists are being fleeced. These reductions should be passed on to motorists.

"Any pump price above £1 per litre causes hardship and misery for many millions of car dependent motorists."

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