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Motoring Groups Demand Petrol Price Investigation

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http://www.bbc.co.uk/news/business-13593591

An alliance of European motoring organisations has written to the European Union calling for an investigation into the price of fuel.

The call comes from the Federation Internationale de l'Automobile (FIA) in a letter to the European Union.

The group represents 35 million European drivers, including members of the RAC and AA in the UK.

The FIA said the way petrol prices are currently set was "far from transparent".

Record prices

A full tank of fuel for an average European car now costs around £10 more than it did a year ago.

The price of fuel in the UK reached record levels in April as the cost of Brent crude rose above $125 a barrel.

Although the price of crude has fallen $10 since then, motoring groups say the wholesale price of petrol has not fallen as fast.

The price of crude oil is only one factor affecting the petrol price.

Oil is traded in dollars, so the exchange rate against the dollar has a big impact on prices.

Taxes, transportation and refining costs also vary - impacting the cost of fuel at the pump.

Investigate market

But the FIA says the EU should investigate the way petrol prices are set for the European market.

Most European petrol prices are derived from the Rotterdam spot market where some cargoes of petrol and diesel are bought and sold.

But the FIA is not sure that this market works effectively.

The organisation also wants the EU to look into the role of speculators who invest in the oil market.

Mr Krauss claimed the "resulting volatility" in petrol prices had a negative financial impact on consumers.

The complaint is backed by the UK motoring organisation the AA, which is calling for an independent regulator to oversee the petrol market.

"No one is giving us any answer as to why petrol prices are so high," said AA public affairs spokesman Luke Bosdet.

"We need greater transparency so everyone can see we are paying a fair price for fuel," he added.

Retailers have said that prices do go down when the cost of petrol has fallen. One way for sellers to balance the changing price of fuel is to buy in advance.

The UK's largest supermarket, Tesco, say they try to keep prices low and will sometimes buy fuel in advance to balance changes in price.

But in a statement the retailer said it was difficult to predict when to buy.

"As everybody knows, it's very difficult to predict movements in crude oil prices, which can go down as well as up. So it's wrong to say that buying in advance is necessarily an advantage," Tesco said in a statement.

"A platform with such a small volume is doubted to be a representative indicator for the vast European market," said Werner Krauss, chairman of the FIA Eurocouncil.

Ask George Osbourne, I'm sure he'll give you an answer. :lol:

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"No one is giving us any answer as to why petrol prices are so high"

Greed and stupidity.

Multiple middle eastern wars and insurrections, booming demand in China (+India, Brazil, etc), continuing decline in OECD production, flat world production for 6 years, increased supply of dollars/euros/pounds..

Plus taxes, obviously.

Plenty of reasons why petrol prices are so high. What they should be asking is how we get out of this.

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I could write the results of their investigation in one sentence:

"We have found that petrol prices are very dear."

IMpact on prices or oil company behaviour: 0

Edited by Realistbear

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Doubt this will get very far when you have independent petrol retails swearing blind that the supermarkets are selling petrol at a loss.

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"No one is giving us any answer as to why petrol prices are so high"

Greed and stupidity.

Would we all be happy to pay £0.70/l?

Well, if so, perhaps we can convince the government to reduce fuel duty by 50p, to just under 8p. That should go some way to correcting the issue. No problems with VAT that way either, that can stay the same.

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Would we all be happy to pay £0.70/l?

Well, if so, perhaps we can convince the government to reduce fuel duty by 50p, to just under 8p. That should go some way to correcting the issue. No problems with VAT that way either, that can stay the same.

+1, talk about a Government masterclass in obscuring the issue.

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Oil is traded in dollars, so the exchange rate against the dollar has a big impact on prices.

As far as I understand, this is nonsense - it may be priced in $, but it trades in all currencies, like gold.

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Would we all be happy to pay £0.70/l?

Well, if so, perhaps we can convince the government to reduce fuel duty by 50p, to just under 8p. That should go some way to correcting the issue. No problems with VAT that way either, that can stay the same.

All other things being equal, cheap petrol (and its knock ons to other transported goods) is great.

BUT in reality a cut in fuel duty means another tax would have to rise to make back the lost tax revenue.

No one in my family drives much, so i'm afraid that personally i'd rather see fuel taxed than - say - VAT increased again.

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All other things being equal, cheap petrol (and its knock ons to other transported goods) is great.

BUT in reality a cut in fuel duty means another tax would have to rise to make back the lost tax revenue.

No one in my family drives much, so i'm afraid that personally i'd rather see fuel taxed than - say - VAT increased again.

We need to get away from this nonsense. The scope of Government is far too great in the UK. We should be hacking limbs from the parasite, not squabbling about who ought to be shafted by what etc. People get to keep a fraction of what they earn, it ought to be more. Taxes ought to drop across the board. Instead we've seen fuel tax revenue increase and VAT rise. Well, blow me!

When fuel ceases to be something that taxes can be increased on anymore, they'll be raised again on something you do give a sh*t about. Ad infinitum.

Edited by cheeznbreed

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We need to get away from this nonsense. The scope of Government is far too great in the UK. We should be hacking limbs from the parasite, not squabbling about who ought to be shafted by what etc. People get to keep a fraction of what they earn, it ought to be more. Taxes ought to drop across the board. Instead we've seen fuel tax revenue increase and VAT rise. Well, blow me!

When fuel ceases to be something that taxes can be increased on anymore, they'll be raised again on something you do give a sh*t about. Ad infinitum.

I agree, but you can't go from government expenditure being £650m and taxes £500m to both being say £250m overnight. It's just not practical. The coalition is at least making a start.

I agree also that there is too much focus on fuel duty. However, since this is a thread on fuel prices I think chipping in to say not everyone is outraged about fuel duty seems on topic.

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£1.39 a litre for unleaded round where i live - roads packed probably it being half-term this week. See no sign of any change in behaviour :blink:

Edited by skomer

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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