Dery price rises 19% in six weeks
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• The big oil companies have put the price of dery up again to around 26.9 pence per litre. This is the third increase in less than six weeks.
Shell was first to announce the rise its increase added 0.8p to a litre and came into effect last Friday. Other oil companies were quick to follow suit Texaco's price went up by 0.8p per litre from Friday. Total by 0.8p from Saturday, Esso 0.75p from Monday and BP 0.9p from Monday.
This means that the price of diesel has now risen by 19%, excluding duty, since August 11.
The oil companies hastened to justify the latest hike on the grounds of poor profit margins. A Texaco spokeswoman said the company was not making enough profit and with the rise in the price of crude oil the returns were inade quate. Esso said it was still not breaking even and had increased its prices to bring back the margins.
Shell warned that further in creases in the immediate future could be on the cards.
The Freight Transport Association described the increase as "unjustified" and urged companies buying diesel for lorries to negotiate hard with the oil companies for the best bulk purchase deals.
"The oil companies have had it good for a long time," said an ETA spokesman, "I'm surprised to hear them say they're not doing very well.'' The Road Haulage Association said it deplored the price rise but will wait and see how it filters through into bulk purchases.
Oil Price Assessment, a company specialising in monitoring the oil market, said the market is in a very volatile position at present and probably will remain that way for the remaining two months of OPEC's agreement to limit production of crude oil. Output has been squeezed down from 19 million barrels per day to around 17 million at the moment.