OFT review of fuel prices05 Sep 2012

Commenting on the news that the Office of Fair Trading is calling for evidence on the petrol and diesel market, Professor Stephen Glaister, director of the RAC Foundation, said:

“We have always argued for pricing transparency and this review promises to provide it. There has long been a suspicion amongst drivers that pump prices are much quicker to rise than fall. Now at last we should get a definitive answer on how the market works.

“We also welcome scrutiny of what the rapid decline in the number of petrol stations has meant for fuel supply and price. In 1990 there were some 18,000 forecourts. Now there are less than 9,000.”

RAC Foundation figures show that as of Monday 3 September 2012 the price of petrol was 138.03p per litre. Diesel was 142.87p.

57.08p of the total price (for petrol) covers the costs of oil, fuel production and supply, and profit margin. This is 41.3% of the pump price.

On the same day the price of Brent crude oil was $116.48 per barrel.