12.02.09 Petrol prices creep up on weak pound
Motorists are now paying more than £1 per litre for diesel and 90 pence per litre for unleaded.
The average price of unleaded jumped 4.3 pence per litre in January, while diesel increased by 3 pence per litre, according to data from PetrolPrices.com.
The rises mean the average motorist is now paying an extra £2.50 per tank compared to last month.
Last July pump prices reached record highs of 119.9 pence per litre for unleaded and 133.4 pence per litre for diesel.
The price of oil also peaked around the same time at $147 a barrel, only to collapse to $38 a barrel in late December.
Oil prices have stabilised at around $47 a barrel in 2009, prompting some motoring groups to accuse petrol retailers of profiteering as prices increase.
However, the problem is not just greedy petrol stations putting the price up, but the weakness of the pound against the dollar.
Oil is sold in dollars, and when the pound is weak it makes fuel more expensive for us to buy. The pound might have strengthened in recent weeks but that takes time to take show at the pumps.
The exchange rate is the main reason prices are rising again, but also, because prices are relatively low there's no pressure on retailers to reduce them further.
Have you noticed pump prices creeping up again?








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"greedy petrol stations putting the price up"
Get a grip on reality Brendon
Current margin on Unleaded, selling at 89.9pence per litre is 0.4pence before expenses. A gross profit margin of 0.5%
I don't think many other retail outlets only make 0.5% especially when I have to make 3pence just to cover Wages, electricity and Rates.
Prices are going up because no-one has faith in the british economy and thus the £ is falling against the $
What a suprise, we are been ripped off again! Tell me how the pound dropping a few pence to the dollar can make unleaded rise 7p a litre in 3 weeks? It gets me the slightest excuse and it rockets back up within weeks, it comes down and its dragged ourt over 6 months. I SAY A FUEL PROTEST IS NEEDED, WE ARE IN A RECESION AND THE BEST THESE IDIOTS CAN DO FOR US IS INCREASE OUR NUMBER ONE BILL! Before we know it it will be well over a pound a litre again, and dont forget our Browns gona hit us with 2p in april, claming to save the plannet. We all wonder why we are in a Economic Downturn, well here people, lies your number one reason! Makes me sick!!!!
1
Steve, interesting to see a garage owner here and well said. This is a good site that provides a useful service for those wanting to shop around for their fuel - but some of the 'copy' is as daft as some of the posts (e.g. 2). How can a petrol station be greedy? You're doing well to be making 0.4ppl at 89.9. Still - margins were OK pre-Christmas I guess.