Biggest Petrol Price Rise For 18 Years
Monday, 18. June 2018
What a surprise, the crooked fuel suppliers, having seen that people are massively switching from diesel to petrol, have seen fit to increase the pump cost to its highest for 18 years. OK, you can’t help it if oil prices increase and the reasons given for the highest increase, according to the RAC, since their records began in 2000, is that crude has increased as a result of the weakening pound and the drop in production from Iran.
That might seem quite reasonable. However, I heard that the fuel providers have increased the cost at the pumps because they were hedging against the cost of oil going up further in the future as a result of Trump ditching the Iran Nuclear Deal. So we’re paying for an increase that may or may not happen!
Immediately following the trashing of the Nuclear Deal crude rose as Iran decreased production but, according to experts, the pump prices have increased by more than that dictated by the increased crude price. You can draw your own conclusions, especially as Saudi Arabia has agreed to fill any production gaps left by Iran.
So supply should remain the same. In May the average cost of petrol increased from 123.43p to 129.41p. Diesel increased by more but that was still less than the highest increase that occurred in 2008. Simon Williams of the RAC said that crude oil has flattened off and that there is an OPEC meeting on the 22nd June when they are expected to step up production so we could see a small drop in the cost of petrol and diesel. By Graham Hill
