Staveley Head

Staveley Head

March 01, 2010 07:00 ET

Petrol Price Increases in the Pipeline

FLINT, UNITED KINGDOM--(Marketwire - March 1, 2010) - Since the beginning of February the price of oil has risen from $70 to $78 a barrel and it continues to rise daily. Each £2 a barrel rise in the price of oil puts 1p on the cost of a litre of petrol at the pumps, and it takes about four weeks for the increases to filter through to garage forecourts.

Currently petrol prices average around 112p per litre says the AA, and have been at that level for over a month despite a fall of 2p a litre in the wholesale cost of the refined product. The AA believes that the giant oil companies are failing to pass on cost reductions to consumers. When the recent increases in oil prices filter through the cost of petrol could rise by up to 10p a litre. The AA blamed speculators for artificially "talking up" the price of oil for their own financial advantage.

There is still considerable disparity in the prices of petrol being offered at the pumps. Both Asda and Morrisions are selling petrol at 108.9p a litre, but many motorway service stations are charging 120p a litre. But the AA is said to be "puzzled" by the decision of Tesco, traditionally a leading promoter of cheaper petrol, to sell at an average of 111.94p a litre and be undercut by the likes of Shell.

A spokesman for Staveley Head, one of the country's leading van insurance providers, said "When the price of petrol increases it's a double hit for consumers. Not only do they pay more for the petrol they put in their own vehicles, but they pay more for just about all the goods they buy in the shops, as the cost of transporting those goods has increased. They may be able to defer buying luxury items, but they still have to buy the basic essentials such as food which will also have gone up in price. We're in the throes of an unprecedented economic recession and manufacturers and suppliers are simply not able to absorb any increased costs and must pass them on to the public. Surely there is something the Financial Services Authority and other Global regulators can do to stop speculators manipulating the market and causing these massive fluctuations in price which they can then take advantage of to artificially boost profits."

Staveley Head have over 15 years experience in the industry and have earned a reputation for providing quality, low-cost van insurance for organisations across the UK. Offering cover from a panel of leading insurers means that the firm can offer the most appropriate cover for clients, at the most affordable prices. To find out more, visit: http://www.staveleyhead.co.uk.

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