‘With many fuel retailers barely clearing costs, only the Chancellor of the Exchequer is in a position to permanently reduce the price of fuel at the pump, through a reduction in duty,’ said Ray Holloway, Director of the RMI’s Petrol Retailers Association (PRA), commenting on moves by MPs to force retailers to drop their prices.
According to Holloway, the relationship between the price of a barrel of oil and the price at the pump is not straightforward: He explains that there is not a direct link. Changes in the price of a barrel of oil do not necessarily affect the price at the pump immediately, and at present this is being further distorted by the falling value of the pound.
You see, the oil market operates internationally, and is based upon the US dollar. As a result the local impact can vary greatly based upon these and other variables. It is therefore a myth that retail prices always go up with the crude oil price, and fall more slowly.
Holloway believes that a reduction in the fuel duty level would be far more effective as by cutting fuel tax would mean an immediate reduction in prices for the consumer, and would give forecourt traders a little breathing room.
Is this simply not robbing Peter to pay Paul? Just cut to the chase and get these fuel prices reduced.
FemaleFirst Jackie Violet