Dery rise shocks RHA
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OIL COMPANIES have increased the bulk price of dery by 7.7p per gallon, and have run into stiff criticism from the Road Haulage Association which says the companies are cutting their own throats.
BP, Esso, Shell, and Texaco have all increased the price by the same amount, in order to protect their net returns, and an Esso spokesman pointed out that discounting had reached such a pitch that, before the increase was implemented, dery was cheaper than at the beginning of this year.
A Shell spokesman said that the net return on oil products was lower than at the beginning of the year.
But this has not sweetened the pill for a frankly "astonished" RHA which said the increase will add at least one per cent to hauliers' operating costs. It is disturbed that the increase follows a 5p per gallon increase last month.
"There cannot be a clearer indication that the oil companies are cutting their own throats by assaulting the very industry which is one of the major markets for their products," it added.