June 13, 2001. Copyright 2001. Graphic News. All rights reserved.

UK drivers pay highest petrol prices in Europe

LONDON, June 13, Graphic News: British motor fuels remain the dearest in Europe, and probably the world, despite cuts in global oil prices over the last three weeks.
UK fuel retailers and supermarkets have watched their profits climb as oil prices on the benchmark Rotterdam barge market have slumped by nearly $100 (£67) a tonne to $282 (£203) on June 12 compared with a $375 (£270) 10-month peak on May 11.

But instead of following suit to reduce prices, UK fuel retailers have held on to previous price hikes following an earlier jump on global markets.
Retailers in other European countries have responded differently to the global price movements.

ÒIn some countries, just as they increased prices fast in line with cargo prices, prices have also fallen fast,Ó said Peter Regnier of Oil Price Assessments Limited (OPAL).
UK retailer margins have more than doubled over the past three weeks from 2.6 pence to 5.8 pence per litre on June 8, Regnier said. Oil companies say their operating costs amount to 4-5 pence per litre.

UK pump prices have long been the highest in Europe, but that is because 75 percent of the retail price is taken up by government taxation.
Last September Britain was rocked by protests after hauliers and farmers objected to record fuel prices bloated by high tax and a spike on the international crude oil market.
/ENDS
Sources: Reuters, OPAL