The Great Diesel Rip Off, another reason to run your car on water
By Ray Massey The Daily Mail Friday 6th June 2008
Millions of drivers are being 'ripped- off ' by oil firms which have not passed on a 10 per cent drop in diesel prices.
The AA said the savings should be worth around 7p a litre at the pumps.
And it warned that it will call on the Government to investigate if diesel prices continue to climb.
Energy experts Platts said the wholesale price has significantly fallen in the past fortnight.
On May 23 - the day after oil hit a record $135 a barrel - diesel was selling at $1,342 a ton, but yesterday the price had dropped to $1,203.
On May 23 the average cost of a litre of diesel was 126.7p per litre. Yesterday it stood at 129.9p.
Andrew Bonnington, a spokesman for Platts, said: 'The wholesale cost of diesel cargo delivered into the UK has fallen by 10 per cent in two weeks.'
The union Unite accused Shell of ' profiteering' after the company announced record profits of nearly £14billion in January. Shell denied the claim.
The AA said disquiet over rising prices would prompt anger from millions of
diesel car drivers if the drop in price was not passed on.
A spokesman said: 'We fear motorists are being ripped off.'
More than ten million cars on our roads are diesel - about a third of the total.
Their numbers, however, are rising rapidly as about 45 per cent of new cars sold are diesel, compared with 13.8 per cent in 1999. That figure is set to exceed 50 per cent next year.
The AA said there was some evidence the diesel pump price had started to fall slightly in Scotland but this was not happening in England.
Edmund King, the motoring group's president, said: 'Unless fuel suppliers can come up with a valid reason as to why diesel prices are still going up when European wholesale prices have dropped, the AA will call for an immediate investigation.'
Although petrol prices have fallen on international markets, the cost of filling a Ford Mondeo-sized family car's 50-litre tank with diesel has risen by £16.28.
To add to drivers' woes, tanker drivers have announced plans to strike for four days after talks over pay broke down.
Some 650 drivers with Hoyer UK, who supply fuel to up to 1,000 Shell garages, factories and small airports, will walk out from next Friday unless the issue is resolved.
The drivers voted last week in favour of industrial action and yesterday gave seven days' notice of a dispute.
This comes just weeks after the Grangemouth refinery dispute, which caused forecourts to close in the North of England and in Scotland.
Fuel supplies face further disruption if the tanker drivers' action goes ahead.
Hoyer said that it had made an improved pay offer worth 6.8 per cent to raise drivers' average earnings from £36,000 to around £39,000.
Business Secretary John Hutton said he did not believe a strike was justified while Alan Duncan, the Conservative spokesman for business, said the action would create further uncertainty.
The two sides have agreed to go to the conciliation service Acas in the next few days in an attempt to stop the strike.
Freeze on 2p Fuel Duty
Darling opens door to freeze on fuel duty amid growing confusion about road tax U-turn
By James Chapman
The Daily Mail 29th May 2008
The good news was that he gave a clear signal that a 2p hike in fuel duty due in October would be postponed.
The bad news was that he slapped down apparently unauthorised suggestions a day earlier from Cabinet ministers Jack Straw and John Hutton of an early retreat on increases of up to £245 in vehicle excise duty for millions of family cars.
Despite mounting concern among Labour MPs that the move will become a 'poll tax on wheels', Mr Darling launched a robust defence of the need to tax vehicles that pollute more.
He stressed the move, which will see the cost of a tax disc more than double from £210 for larger cars bought before 2006, would not come into full effect until 2010.
'Vehicle excise duty's been linked to how polluting a car is since the beginning of the decade and I believe it is right we should encourage people to use less polluting cars,' he said.
'If you look at the problems we face now, the big effort must be, firstly, trying to get oil prices down and secondly - and I've made this clear before - I intend to come back to the issue of the fuel tax increase that will be due this October.
'I will do that because I'm very conscious of the fact that people are concerned about the amount of money they are now having to pay out every time they fill up their car.'
Postponing the 2p rise in fuel duty for six months will cost the Treasury £500million, but it has raked in £1billion more than expected in tax thanks to soaring prices.
Gordon Brown, who with Mr Darling held talks with oil industry chiefs yesterday, warned that high oil prices were here to stay.
The Prime Minister said that while he wanted to help the 'hardest hit' families, the problem of global demand outstripping supply was 'long-term'.
The two politicians were at the bimonthly Oil & Gas UK board meeting in
The Conservatives accused the Government of staging a 'U-turn on a U-turn' over vehicle excise duty increases, which as they stand will mean 18million motorists paying more from next April.
Shadow Chancellor George Osborne said: 'It's difficult to see how Gordon Brown and Alistair Darling could make the Government's position on road tax and fuel duty more complicated, but today they succeeded.
Yesterday's U-turn on the big tax rises on family cars is now apparently off. In difficult times, tax policy should be stable and certain - what we have from this Government is instability, confusion and economic incompetence.'
Malcolm Webb, chief executive of Oil & Gas UK, who took part in yesterday's summit, admitted: 'Nothing came out of the meeting that's going to affect the price of fuel at the pump tomorrow.'
Mr Brown said: 'We are trying to do things that will help those families who are hardest hit. This is not just a national problem. It is a global problem of supply and demand, not just in the short-term but the medium-term and the long-term.'
The Prime Minister warned that the world was facing its third big oil price shock of the last few decades.
'In the time I was Chancellor the oil price went as low as $11 a barrel,' he said. 'It's now as high as $130. All of you know the impact that is having on household bills, prices at the petrol station, prices of gas and electricity, and the follow through for prices of consumer goods like food.'
Mr Brown said he wanted to increase the amount of insulation and draught-proofing done on people's houses to help bring down energy bills.
'And at all stages we are going to look at how we can help hard-pressed households cope with what is a problem in every country in the world,' he added.
'I want to make sure we do everything to help British people.'
Business Secretary John Hutton yesterday proposed changes to taxation of the declining
He also announced approval for two new oilfield developments, at West Don and Don South West, 100 miles north east of the Shetlands.
But Energy Minister Malcolm Wicks admitted that increasing
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