BP fuels a
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• As CM was going to press on Tuesday, BP announced a 4.25% increase in the price of diesel, the second fuel price hike in less than a month. Most oil companies are expected to follow suit.
BP is increasing its commercial diesel prices by 1.4 pence per litre, and its bulk diesel prices by 0.9 pence per litre. Bulk prices look likely to settle at around 26 pence per litre.
The company says the price increase is necessary because of recent increases in the crude oil price, which followed the OPEC meeting earlier this month.
Shell looks likely to follow BP's lead fairly quickly. A spokesman said, "Even if the price of diesel does go up to the new level set by BP, it would still mean the consumer is getting an extremely good deal."
The Road Haulage Association says it is not at all pleased by the announcement from BP, "We feel it is unjustified, our members will be very* annoyed."
In recent months the RHA has campaigned hard to ensure that oil companies pass on falls in the price of crude oil to the customer. Now, even though the price of crude has risen from around 81.0 a barrel to $14 a barrel, it is still only half the price it was at the start of the year.
"We were surprised by this price increase so soon after the last one two weeks ago," says the RHA. "But we will continue to monitor the situation. We feel this confirms our case, which we set out in a letter to the prime minister."
Oil Price Assessment, a specialist company which monitors the oil market, says it will take some time for the effects of the price increase to push through the system. "The oil