Why do fuel prices not follow Brent oil prices?
The question
Hi,
Why is the price of petrol and diesel still the same at the pumps when Brent Crude Oil has dropped from $115 in June to $97 in September?
Asked by Kevin Caulfield ·
Expert answer
Hi Kevin,
Because, unfortunately, there is always a lag between the price of crude oil falling and the price coming down at the pump. It’s rarely the case going in the other direction of course, but before you go blaming rapacious fuel companies remember that the actual wholesale price of oil represents only a tiny fraction of the price of a litre of pump fuel – most of it is fuel duty and VAT. In fact, according to the AA, the price is on the way down. The average price for a litre of unleaded has fallen by 5c since June, and the average price for a litre of diesel has fallen by 3c.
Answered by Neil Briscoe