With petrol prices at an all time high, motorists may be heartened to hear that the cost of crude oil fell last month.
In April we saw oil prices drop from $126 to $110 per barrel. So you would be forgiven for assuming that we might see this saving at the pumps.
Certainly, many forecourts are feeling the pressure to reflect the cuts in the petrol prices. The AA have suggested it could mean as much as 8 pence per litre could be shaved off the price.
But the fact of the matter is, we may never see or benefit from these savings. As with many things, there is a time delay before these savings reach us in the UK forecourts, so it has been suggested we may not see any cuts for at least 10 days, if at all. And with talk from city traders already predicting shocking rises for oil prices next year, there is a good chance any price drops we do see, will be flash in the pan…. gone before we know it.
The AA president, Edmund King comments “it’s frightening that not content with giving drivers and business a runaway roller coaster ride on oil price speculation today the traders seem to want even more by threatening doomsday scenarios on oil prices for next year”.
As pressure on petrol retailers continues to mount, a protest took place yesterday with campaigners demanding the government agree a reduction in fuel duty. With around 150 vehicles taking part in a ‘go slow’ which headed towards the Shell Oil Depot in Cheshire with a further 40 protestors staying at the depot claiming they would stay at the depot until their demands are met
Ian Charlesworth who organised the protest said “People are suffering already from the high cost of fuel as they are having to give up jobs they can’t afford to drive to”.
Director of the RAC Foundation, Stephen Glaister calls for an investigation to be carried out looking at what we pay for petrol, much like the OFGEM inquiry on energy prices last year. Glaister insists families get a fair deal.
A spokesmen from Labour Transport department claim motorists are being conned and ripped off by the lack of savings at the pumps following the oil price drops.
At Think Insurance we, like many motorists and businesses in the motor trade, were optimistic that the reductions in the price of oil would be translated to our forecourts. But it would seem that someone is set to benefit from the price drop, but sadly, it is unlikely to be us, the end user.