Motorists are 'ripped off' as oil price fall not passed on

Published on Thursday 16 June 2011 15:48

DRIVERS are suffering new fuel price increases after being "ripped off" by previous oil price falls not being passed on, Britain's biggest motoring group claimed today.

The Automobile Association said pump prices were now heading back towards record levels, while drivers had not received the full benefit of a dip in the oil market in the last few weeks of May.

Its latest monthly fuel price report showed unleaded petrol averaging 136.07p a litre across the UK on Monday, up from 135.75p on 5 June and edging towards the record of 137.43p on 9 May.

The average price in Scotland is higher, at 136.3p.

However, Scotland continues to have the UK highest average diesel prices, at 140.5p compared to 139.77p across the UK.

The UK average was up from 139.34p on 5 June, but is still 3p lower than the record 143.04p of mid-May.

AA president Edmund King said petrol buyers had been denied much of the savings that should have filtered down from last month's oil price crash from $126 to $110 a barrel - short-changing drivers by some 2p a litre or 1 a tank. He said: "Had the full potential 4p drop in petrol price, from May's all-time high of 137.43p to the 133.5p seen in March when oil initially settled at $115, been passed on, it would have saved a two-car family 8.49 over the month and possibly improved Tuesday's inflation figures.

"Without transparency in the oil and fuel markets and a regulator to ensure fair prices, drivers, consumers and the nation are open to being ripped off by whoever wants to make an extra buck."

The AA said it was difficult to predict how soon diesel would reach an average 7 a gallon, or 154p a litre. A spokesman said: "I wouldn't bet on it in the short term. Oil is yo-yoing again as the speculators push the price up, and then it tumbles on bad economic news. Oil tumbled $4-$6 on Wednesday. Who knows where this will end?"

Neil Greig, of the Institute of Advanced Motorists, said: "This looks like a return to good old fashioned uncertainty and price volatility, all of which the (UK] Government said it was trying to iron out. If this trend continues, the Chancellor's market stabilisation ideas from the last Budget will have failed very quickly."

Dr Richard Dixon, director of environmental campaigners WWF Scotland said: "As we've seen, the government can't stop oil, gas or electricity prices going up, but they could be leading the country in working out how we live without fossil fuels. We have great potential for renewable energy, so electric cars must be a big part of our future."