Cost of petrol set to soar again
Monday 9th August 2010, 10:16AM BST.
Petrol prices could soar by eight per cent by the beginning of next year, it was predicted today. And the cost of filling up could rise by three per cent by the August Bank Holiday weekend.
The warning came from the Retail Motor Industry Independent Petrol Retailers Association (RMI Petrol).
It put the blame for the expected rises on currency movements and world oil price increases.
RMI Petrol, which represents about two-thirds of Britain’s 9,000 petrol forecourt sites, said prices go as high as 125.9p per litre in the new year, smashing the current record of 121.61p.
This would take into account the rise in VAT and the planned fuel duty hike.
RMI Petrol chairman Brian Madderson said: “The rebound in crude oil pricing is disappointing but not entirely unexpected.
“It will further increase pressure on independent retailers who are fighting for survival, especially in rural areas, due to the double hit of falling volumes and tighter margins.
“This crude oil increase will feed through the supply chain and could result in prices going up by as much as 4p a litre in the next three weeks.”
He went on: “We also need to remember that the coalition Government did not cancel Labour’s Budget commitment to raising fuel duty by 1p a litre from October 1 and a further 0.76p from January 1, with both having VAT added.
“Then we have the coalition’s emergency Budget proposal to increase VAT to 20 per cent from January 4, so the outlook remains extremely difficult for motorists and retailers alike. As I forecast earlier this summer, we could be seeing new record pump prices within six months.”
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