12th April 2022
The staggering exploitation and greediness shown by oil
companies and fuel wholesalers exceed belief. Prices at the pumps should now
be 15p to 20p less, because oil costs have collapsed by 30% in March/April
stabilising at around $100, plus the Chancellor’s welcome 6p cut in fuel
taxes.
And here’s the cogent evidence
that the unchecked greed is rife in the fuel supply chain, by analysing data
from the widely respected RAC Foundation:
In the 8
years between 2012-2019 yearly profit margins averaged 9.1p per litre
for petrol and 10.9p for diesel. Sounds a reasonable return, when you
consider at that level it is £5 to £6 profit from every family car
filling up.
Yet in the
last two and a quarter pandemic years, profit margins have doubled. 2020
to April 7th, 2022, petrol profits have averaged per year 18.2p per
litre, a 100% increase. Diesel margins have hit an average of 20.5p per
litre, an 87% increase.
Even after
Covid, the faceless avaricious businesses still continue to profiteer
more so from the cost-of-living crisis by ignoring the Fuel Duty cut and
oil prices crashing.
Their
profits just keep on soaring. The latest margins recorded for petrol
11th April are now 29p per litre and diesel a staggering 33p per litre.
Even
considering the lag time claimed by the Competition and Markets
Authority, that it takes 7 weeks for oil costs to wash though to the
prices at the pumps, shockingly profit per litre for petrol is still 29p
but diesel a mind boggling 44p per litre.
That means
the average family diesel is now parting with a staggering £24.20 of
hard earned cash in profit, when they fill up, to line those already
very fat wallets in the fuel supply chain.
Craig Mackinlay MP and Chair of
the Fair Fuel APPG said: "Wholesale oil prices are way down from
historic highs but the price at the pump has moved down by mere buttons. It
is now even more obvious that motorists are being fleeced by the fuel
retailers and it’s time for a ‘Pumpwatch’ price monitor to highlight the
truth and bring such blatant profiteering to heel."
Howard Cox, Founder of
FairFuelUK said: "My
message to Rishi Sunak: With the unbearable ‘just stop oil’ protests causing
yet more fuel supply uncertainty in the lead up to Easter, its so way past
time your Government started to help UK’s 37m drivers. You could ensure your
5p Fuel Duty cut reaches the pumps and drivers get honest and transparent
fill up prices using PumpWatch. Its time you stopped the incessant
profiteering. And please also ask Priti Patel to guarantee the Police secure
and protect fuel supplies to our vital forecourts."
FairFuelUK
Opinion
"There is a foul stench of sickening
exploitation hanging around thousands of garage forecourts, at 3 weeks after the
Government’s Spring Statement. Our hard fought and historic 5p Fuel Duty cut
on one of the world’s highest taxed motorists seems to have gone unheeded by
much of the fuel supply chain."
"We should have been seeing fuel price
signposts across the country dropping 6p per litre for diesel and petrol at
6pm on the day Rishi stood at the despatch box. Most forecourts it seems,
ignored the Business Minister and the Chancellor’s jointly signed letter to
retailers to meet the 6pm fiscal deadline."
"What’s more this surprisingly and
increasingly anti-motorist Tory administration seem to be sitting back and
letting not only the ignorant fossil fuel protesters hamper oil depot
deliveries to forecourts, but they are also, dare I say it, almost are encouraging
the fuel supply chain to continue to fleece drivers at the pumps. Don’t
forget the billions of extra VAT pouring into the Treasury due to eye
watering pump prices."
"Lame excuses gushing out from fuel
suppliers, saying bulk stock had already been paid for at the higher tax
rate, meant they had no room for manoeuvre. One miffed garage owner retorted
to me: “It will take a few weeks before the tax cut is seen at my garage”.
Funny that! When oil prices rise, pump prices rocket within hours on their
already pre-paid existing fuel. This greedy pump pricing hypocrisy rankles
deep with drivers across the nation."
"The Treasury’s press office, with amoebic
intelligence decided to leak the fated 5p cut in fuel tax, weeks before its
announcement in the Spring Statement. Thus, giving an eternity for
wholesalers and retailers to fervently raise prices prior to the tax change,
even on already paid for, fuel stock. And didn’t they did take advantage, big
time. Despite fuel wholesale falls on the day of around 4p per litre, before
Rishi Sunak’s sermon, pump prices increased by on average 3p. That truly
stinks and I believe is tantamount to being fraudulent!"
"So why doesn’t Rishi Sunak do the
right thing to alleviate this part of the crippling cost-of-living crisis. He
has the power and voter’s support to stop the continual fleecing of drivers,
by implementing our long called for, independent fuel pricing watchdog,
PumpWatch. This body would cost him and his government virtually nothing but
will save UK’s 37m drivers a king’s ransom. What’s he got to lose? It may
just save the Tory’s increasingly beleaguered reputation at the May local
elections, particularly in those rural areas where pump prices are the most
extortionate."
"Let’s not forget diesel, the
commercial heartbeat of any nation. It remains the biggest victim of greedy
market speculation, with the gap between derv and petrol growing hugely by
the day. These fuel costs are putting a crippling strain on the viability of
hauliers and logistics. And the economy too. That’s why I back the Road
Haulage Association's logical call for an essential road users fuel duty
rebate."
“Sadly, the Government’s efforts to work with the fuel industry so that pump prices are competitive, and market driven, ensuring consumers benefit from lower prices, is not working. The reality is that motorists are now paying £16 per tank more than last year and nearly £2bn of falls in the wholesale price have not been passed onto hard-pressed motorists at the pumps. This is bad for the economy, bad for inflation, bad for business and bad for jobs. That’s why we need to introduce an independent pump pricing watchdog.”
Craig Mackinlay MP, Chair of the APPG for Fair Fuel for Motorists and Hauliers
“Struggling families need a PumpWatch regulator asap. The rip off oil companies are feeding the cost of living crisis as they refuse to cut prices at the pumps even when the international oil price has fallen. If we can have an energy price cap, at least have a fair price at the pumps.”
Robert Halfon MP, Vice Chair of the APPG for Fair Fuel for Motorists and Hauliers
" The perennial pump pricing rip-off scandal that FairFuelUK has been campaigning against for the last decade. PumpWatch is now even more crucial to the Nation’s positive economic growth, jobs, business investment, logistics, consumer spending and social mobility. This beleaguered Conservative Government needs it in place now, to help regain trust again and to avoid long-term voter repercussions. Boris you know this makes economic and political sense, it’s time for you to throw away your anti-motorist plans and recognise the common sense in giving drivers a well-deserved break”
Howard Cox Founder of the FairFuelUK Campaign