Driving up the prices

You may have heard that the price of oil is down, but it's unlikely you've experienced cheaper petrol prices, as speculators are driving up the price of oil at an alarming rate.

Edmund King, President of the AA, said that the situation could have been even worse for drivers had supermarkets not held back on price increases earlier this month.

He said: 'UK families remain hostage to fuel price movements that buck traditional trends, and oil prices that don’t even make sense to experts in the market.

'It’s time the Government asked questions and, at the very least, introduced transparency into the oil, wholesale and retail markets. Why? Because the consumer is clearly being put through the wringer to line someone else’s pocket.

'Earlier this week the Transport Secretary suggested that railways have become a ‘rich man’s toy’. At the rate we are going with fuel prices, the car will not be an option for the ‘poor man’ either.'

Because the pound is weak, we're seeing a 2 pence a litre rise at the pump at a time when crude oil has dropped from from $127 a barrel to around $115.

A year ago motorists were paying 115.07 pence a litre for unleaded, which is 20 pence less than they are now, whereas diesel cars owners were paying 117.54 pence, while today they are paying 143.04 pence.

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