Diesel price could reach record high in weeks
According to the Petrol division of the Retail Motor Industry (RMI) there are growing fears that the average price of diesel on the forecourt will break last year’s high of 1.43p/litre very soon; maybe even hitting 1.45p/litre in the next couple of weeks.The recent holiday period saw the steepest and fastest ever rise in wholesale costs. From 19 December 2011 to 5 January 2011 the price of diesel increased by nearly 4.50p/litre and unleaded petrol by as much as 5.00p/litre; and that’s excluding VAT. These increases have been so rapid that fuel retailers have had little time to react over the holidays and only a few have made any significant rises to their pump prices.
“This is a very worrying development but not entirely unexpected,” said Brian Madderson, chairman of RMI Petrol. “I wrote to the Chancellor on 2 January highlighting the serious supply issues ahead and enclosing a report — The case for reform of fuel taxation — as it is the Government’s only direct control over rocketing fuel prices which are undermining society and our economic recovery.”
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