Over half of the British public believe that oil companies are taking advantage of them and that the Government should be putting more pressure on them to reduce prices, our survey shows.
- 52% think that oil companies are charging more than they should and are taking advantage of the public
- 36% do not think oil companies are to blame, and say that high prices stem from world prices and government taxes
- 59% believe that the Government should be putting pressure on oil companies to reduce the price they charge for fuel
- Compared to 22% who think that the Government should leave oil companies to set their own prices for petrol and diesel, as competition between companies will keep prices down
The price of fuel has neared record highs despite the sustained fall in price of North Sea oil over the second quarter of the year. Despite a tumultuous year for the commodities market, the price of North Sea oil, known as Brent crude, has in fact fallen across the second quarter, resulting in questions being asked as to where such high prices are coming from.
Despite the reduction of fuel duty in April, the planned hikes in duty in 2012 are set to increase prices further: from January 1st the duty will rise to 3.9p per litre. This will see further pressure put on households and businesses as they attempt to contend with higher costs.
Supermarket wars
When it comes to petrol, supermarkets have been accused of magnifying the pricing problem. Spiralling prices have seen supermarket leader Tesco drop its petrol prices by 2p to attract consumers into their store, putting pressure on other supermarkets to follow suit, as they subsidise this through their other products.
But representative for independent petrol retailers across the UK Brian Madderson explained to the BBC that price wars such as this work to the detriment of independent retailers, who can’t reduce prices to such an extent, leading to an unfair lack of competition, but with consumers continuing to think that they are being ripped off. ‘It’s no wonder that consumers are coming into our independent stores and saying ‘You’re ripping us off at the pump.’ [But] it’s quite untrue.’
‘Astronomical’
Meanwhile, high prices continue to affect Britons’ lives. Louise Pepper from Lincolnshire has seen the rocketing prices compromise her family’s holiday plans to Wales, causing them to go on a shortened trip in a bid to save on petrol. She told the BBC, ‘It is £70 to fill a tank now, and it is a tank there, a tank up, and a tank back. It makes the cost of the holiday astronomical really’, she said.
