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Home >> Business
UPDATED: 10:59, January 07, 2007
British petrol firms criticized for "smart" pump costs
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Missed out by the oil price fluctuations during which petrol companies seemed to have playing "smart" pump prices, British motorists are demanding the oil firms to give an explanation.

Drivers' groups demanded to know why petrol firms were so quick to raise their prices when oil costs jumped, but did not slash them after falls in the price of crude oil, according to the Daily Telegraph on Saturday.

The news came as the oil price dropped below 55-U.S. dollars-a-barrel for the first time in 18 months.

It comes only days after commuters suffered a sudden leap in rail fares, which many suspect will drive people back on the roads.

The price of crude oil, which surged to 78 dollars a barrel amid fears of a global shortage, has fallen dramatically in recent months, thanks to mild weather in the United States and an unexpected jump in American stockpiles of crude oil.

This pushed pump prices up towards one British pound (about 1.923 dollars) a litre, but industry insiders said prices had taken a curiously long time to change direction.

Edmund King, a spokesman for the RAC foundation, said, "It quite often seems to happen that when oil prices go up, the pump price also goes up almost immediately. But then when crude prices fall, it takes much longer for it to be reflected on the forecourt."

King said that "The companies often claim it takes some time for changes in the oil price to flow through to pump prices, but in that case, why do they raise prices so quickly when the oil price goes up?"

In another development, commuters across Britain seem to be complaining the above-inflation rate of train fare rise started one day after the New Year's day.

Passenger groups have attacked some rail companies for raising ticket prices at a time when commuters are facing massive disruption and poor quality services.

The rise means that a standard open return fare between London and Manchester now costs 150 pounds (about 290 dollars), about 50 percent rise in less than two years.

Environmental transport group Transport 2000 said that under new rail franchise contracts about to be signed, operators will be able to raise fares even when they perform badly.

Source: Xinhua


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