Rise n Fall of Petrol Prices

The supply and demand of fuel on a worldwide scale, as well as geopolitical events, natural catastrophes, and the actions of different governments, are all variables that may drive up or bring down the price of petrol. The price of crude oil, which is refined into petrol, is the most important factor influencing the price of fuel. The price of crude oil rises whenever there is a reduction in the global supply of crude oil, which may occur during times of war, natural catastrophes, or production cutbacks by oil-producing nations. This causes the price of crude oil to rise, which in turn raises the price of fuel.

In a similar vein, the price of gasoline has a propensity to go up whenever there is a surge in demand for the commodity, such as when the summer driving season is in full swing or when people are on vacation. In addition, the price of fuel is affected by the laws, taxes, and subsidies enacted by the government. For instance, in order for a government to earn more income, it may decide to raise taxes on fuel, which would have the effect of making petrol more expensive for consumers.

Because of all of these many influences, the price of fuel has a history of being volatile throughout time. It is essential to keep in mind that the price of fuel might change from one location or nation to another, based on variables specific to that area such as the cost of transportation, taxes, and laws.

A competition monitor has said that there is evidence to suggest that there was a "rocket and feather" pricing scheme in effect in 2022.

When this happens, the price of gasoline goes up in tandem with the increase in wholesale costs, but it goes back down at a slower rate than the expenses do.

The Competition and Markets Authority (CMA) said that it will investigate whether or not this resulted in increased profits for retailers.

According to the RAC, this was a common issue, and gasoline costs throughout the holiday season were higher than they should have been.

The Competition and Markets Authority (CMA) claimed in a study that it discovered evidence of "rocket and feather pricing" across the board for all merchants in March and April 2022, particularly for fuel prices.

What exactly is fuel tax, and will it be increasing along with the price of petrol?

Notwithstanding this, the Automobile Club of Great Britain (RAC) said that there was "clear evidence of it occuring this time last year as well as in 2018 and 2019."

"As wholesale costs trend down for weeks at a time, drivers should see pump prices go the same at a comparable pace," said Simon Williams, a spokesperson for the RAC fuel department. "However, our data indicates that this is not always the case," added Williams.

"A significant decline in the price of wholesale gasoline is taking place right now, just as it did in December of last year, but the price of petrol at the pump is decreasing more gradually. As a result, motorists should brace themselves for a Christmas season on the roads that will be more costly than it should be "he said.

Since the beginning of October, the price of wholesale diesel has "plummeted" 33p, while the price of fuel at the pump has only decreased 8.4p, he claimed.

In the meanwhile, the wholesale price of gasoline has dropped from 130 pence per litre to 109 pence, which represents a loss of 21 pence, he stated. Nonetheless, the price of regular unleaded fuel has only decreased by 8 pence on average.

"We are making it clear that we want the largest shops to reduce their pricing. Regrettably, we have reason to believe that they are being stubborn in the hopes that the price of oil will go up later this month "Mr Williams remarked.