Fuel prices to rise, says PRA
Fuel prices are set to go up again, according to the Petrol Retailers’ Association (PRA). Factors driving this increase include the civil unrest in Syria and Egypt, the reduction by one third in Libya’s oil exports and the demand for oil slowly returning to some Asian markets. The cost of Brent oil pushed through the $110 per barrel level recently, which equates to a 10% increase since the end of June.
PRA Chairman, Brian Madderson, said, ‘UK petrol prices have not yet seen the full impact of this crude oil increase due to the rapid and slightly unexpected revaluation of pound sterling from $1.48 to $1.56. Therefore it was concerning to read recent comments from the City that the “pound is overblown” and will soon come hurtling down towards the $1.45 level. Should the Middle East tensions escalate further and crude oil prices react accordingly, the Bank of England’s new inflation targets could be significantly challenged. The sooner the EU Competition investigation into allegations of oil price fixing is completed, the more certain we can be that our retail fuel prices are only being influenced by macro-economic and political factors and not anti-competitive actions of the oil companies.’