Fuel prices: the truth

Fuel price hikes in the wake of Britain’s largest oil refinery entering administration are simply profiteering by independent forecourts, industry analysts claim.

The Coryton plant in Essex was forced to halt deliveries for 24 hours last Tuesday after its parent company, Swiss-based Petroplus Holdings, entered administration. Pump prices went up by 0.5p per litre overnight. But while the Retail Motor Industry Federation, the body that represents independent garages, was predicting record high diesel prices going into February, AA president Edmund King told Auto Express that market conditions meant prices should actually have been falling. 

And energy broker EnergyQuote’s lead analyst, Damien Cox, said: “It’s ridiculous to think that Coryton going into administration could have a significant impact on supply. There are contingency plans in place. There will be plenty of product in storage and it can be moved quickly and cheaply.” Major forecourt owners such as Tesco, Asda, Morrisons, BP and Shell said they had not suffered supply issues and prices had not risen. 

So why have average prices across the country increased? Cox said: “I think you can see from past instances of supply problems that there have been attempts to profiteer. There will be unscrupulous businesses looking to take advantage of the news.”