PETROL could soon break through the 90p- a-litre barrier for the first time. Oil reached a new high this week as crude hit $100 a barrel and Dave Beausire, Guernsey Motor Trades Association president, predicts a further increase at the pumps.
‘The way things have gone with crude oil over the last month and bearing in mind I don’t think it has reached its peak yet, I think we could see petrol costing around 90p a litre and diesel between 93 and 95p per litre during January, which is sad to say,’ he said.
Referring to Treasury minister Lyndon Trott and the hike in diesel duty, he added: ‘When you consider that people were paying 52 pence-odd for diesel on New Year’s Eve, it all goes back to the point that sorry, Lyndon, you were wrong.’
As at yesterday, prices at forecourts varied widely as islanders could still buy petrol for as little as 61.9ppl - around £2.80 a gallon - and one garage was charging 62.9ppl for unleaded and 52.5 for diesel.
At the other end of the scale another filling station was charging 86.9 and 89.5ppl respectively.
Retailers who have had fuel deliveries this year have incurred the duty rises of 14ppl on petrol and 29ppl on diesel, levied to cover the cost of the States’ decision to abolish motor tax, and passed them on to the customer.
But those with fuel from last year still left are continuing to charge the lower prices until they have to refill their tanks.
Some have stock for almost a week but the cheapest forecourts are expected to replenish their tanks today or tomorrow.
And with crude soaring, Mr Beausire did not believe higher pump prices were the only problem confronting islanders.
‘It will affect home heating oil and heating for industry, manufacturing. It’s going to affect everyone right across the board,’ he said.
‘The price of oil is a global issue. There are two things that affect it. Someone can drop a hand grenade in the Middle East but also Opec do turn the taps off to suit themselves from time to time.’
Condor Ferries currently levies a fuel surcharge on passengers and Nick Dobbs, general sales and marketing manager, said the company paid close attention to prices.
‘Any transportation company is affected by the global price of oil,’ he said.
‘Our surcharge is an agreed mechanism between us and the States of Guernsey and Jersey. It’s there to mitigate some of the effects of increases in global oil prices. If it reaches certain thresholds, the fuel surcharge goes up or down.’
The Freight Transport Association said rising oil prices were bad news for everyone.
‘Virtually everything which we use or consume every day is the product of a lorry journey, so the increased price of diesel impacts on every man, woman and child in the UK,’ said FTA director of external affairs Geoff Dossetter.
Airlines are also at the mercy of oil prices and Aurigny managing director Malcolm Hart said he would have to wait and see what effect this latest rise had on fares.
‘Our prices are based on the average cost of oil for the previous month so we have to wait and see what the cost comes out at in January and then we will know what our prices will be in February,’ he said.
Loading ...
Share this article:
What are these?