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Fuel prices to level despite war
Page 13
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II Diesel prices are unlikely to rise further despite the war in Iraq, say experts.
Last month (March) saw diesel prices top 80p/lit for the first time since February 2001, according to BP.
Ray Holloway, director of the Petrol Retailers Association, says the war probably only accounts for about half of the current rise in prices. Other problems, such as the temporary closure of several US refineries, are also to blame and they should start to resolve themselves this month (April), he says.
"I don't think hauliers have much to worry about but they shouldn't anticipate a quick fall in prices." Nick Vandervell, spokesman for the UK Petroleum Industries Association, agrees that price rises have been driven by other factors apart from Iraq. "it means that the market nowadays does not parallel what happened in the Gulf war."
Latest figures published by Oil Price Assessments show that UK diesel was 77.9p/lit in February, compared with 494/lit in Holland and 63.4p/lit in Germany.
Former fuel protest leader Brynle Williams, now campaigning for a seat in the Welsh Assembly, estimates that prices
would have to reach 90p/lit to trigger a repeat of the fuel protests in 2000.
"I don't think they [hauliers] will take any action while the war is on, in the interests of common sense and decency," he says.