Small rise in the price of oil takes petrol to £1 again
The AA have reported that due to the increase in the price of oil to $60 a barrel this month the price at the pump has shot up to near the 1 pound mark once again. I cannot see how such a small increase in the oil prices can force the price of petrol up to the pound mark once again. n looking at the price of oil over the last year we can see that at its highest price oil was priced at around $150 a barrel, with the price of petrol around £1.26 a litre. The price of the barrel is under half what it was, but the price of petrol is not reflecting it.
This increase in petrol prices comes just as the government plans to increase the tax on petrol by another 2p next month. The AA are planning to confront the Treasury ministers to argue that the next 2p rise should not go ahead and instead be frozen. But fears are that this will be ignored as the government tries to pull back some of the cost of the current recession.
The motorist seem to be in the middle of the petrol companies trying to increase profits and the government trying to claw back some money that they have spent on bailing out our failing banks. I see motoring becoming very expensive over the next few years.
For those who are interested in keeping an eye on the price of oil barrels, here is a little widget.
