Fuel prices ‘need to be more transparent’

The way fuel prices are calculated needs to be clearer to consumers. That’s according to Quentin Willson, Lead Campaigner for FairFuelUK. FairFuelUK launched an inquiry on ‘road fuel pricing’ yesterday. […]

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The way fuel prices are calculated needs to be clearer to consumers.

That’s according to Quentin Willson, Lead Campaigner for FairFuelUK.

FairFuelUK launched an inquiry on ‘road fuel pricing’ yesterday.

Mr Willson added:  “The general feeling amongst consumers – and we have 1.2 million supporters at FairFuelUK – is that this is a very, very opaque and difficult thing for people to understand why fuel goes up very quickly when the price of oil rises.

“[It] then takes – literally in some cases – weeks to go down so this is to find out why there is this confusion out there, this opacity and to see what we can do to change this.”

He went on to say it is “a very complicated formula” however this doesn’t mean it shouldn’t be communicated to the general public, he said.

Mr Willson added it would be good for fuel retailers and the road fuel industry if people understood why there is an issue.

He went on to say ASDA runs a successful price capping scheme with an even price across the country. He added: “It makes me think if we cannot transmit this information to people in a clear and easy to understand way then maybe we should look at alternative versions.”

Mr Willson also spoke about the ‘postcode lottery’, which refers to where people live geographically and what effect this has on the price of fuel.

 

He added: “This is something that people complain to us about consistently – why is it 4p more expensive down the road? We’ve learnt today the price of transport – between taking it on the tanker and how far you go – is at most 2p and generally the average price is 1p to transport that fuel.

“So this off-touted myth that prices on motorways are high because it’s difficult to transport – this is complete nonsense.

“This geographical lottery thing is about retailers trying to get a larger margin because they are in remote communities and seeing really what they can get away with.”

He said the next objective is to help retailers and the road fuel industry to get consumers to understand about why their fuel is priced the way it is.

The price of petrol could fall to £1 a litre this Christmas.