Why Are Petrol Prices on The Rise In The UK?

by | Sep 30, 2013 | Fuel Advice | 0 comments

I remember buying petrol for 90 pence a
litre back in 2009. Today, for the same litre, I am paying around 136 pence.
That’s a huge hike in the price over these 4 years, at least for most of us.
When you consider the salary you draw, the taxes you pay and the other expenses
you have, sometimes it does feel that owning and driving a car is becoming an
expensive luxury.
I remember that I had once filled diesel in
my petrol car by mistake. I had to spend 2 hours on the road before I got it
fixed but that’s another story that you can read about here. The point is, I was more concerned about the diesel I wasted and the
money I spent on it than the inconvenience I had to go through to get things
fixed.
 

So why is it that the petrol prices are
continually on the rise in the UK? Here are a few reasons I came up with when
doing my research online.
Inflation on the whole
Firstly, when you look on the whole, you
will notice that prices of almost everything have gone up. Be it a loaf of
bread or a litre of milk, you are paying much more than you used to, even a
couple of years ago. Therefore, with the changes in the economic condition of
the country and the inflation, the price of fuel has gone up as well.
Political situations across the world
Some of the major exporters of fuel across
the world are at unrest at the moment. For example, consider the situations
Syria and Egypt are in at the moment. Both countries are experiencing a state
of civil unrest, creating a shortage of fuel supply. Libya has reduced the
amount of fuel they exported earlier as well.
Because of the current global unrest among
the oil producers, there is a chance of petrol prices going up further by
around 5 pence by the end of summer!
Demand and supply
Any commodity that sees an increase in its
demand and a shortage in supply will see its price go up. Fuel consumption has
increased by quite a bit in many countries around the world today. More cars
are on the roads in both the UK and other countries. Asia has shown an increase
in the demand for fuel over the recent years too. This increase in demand is
also a driving factor that has resulted petrol prices to go up continually.
Taxes
A major component of the price we pay for
petrol is taxes. With an increase in the price of petrol, the amount if tax we
are paying also goes up. Moreover, increased tax rates are also responsible for
the fuel price hike.
Production costs
Finally, the production costs have also
gone up. Today, fuel refineries and fuel distributors see a much higher cost
than what they had seen even a couple of years back. This in turn makes the
production and distribution businesses expensive, ultimately adding to the cost
of the petrol or any other fuel you buy today.

It therefore becomes important for us to drive
our vehicles responsibly and efficiently to get the optimal output for the fuel
we use, whether it is diesel, petrol or some other type of fuel.