Fleet News

Danny Alexander calls for oil price cuts to be passed on

Chief Secretary to the Treasury, Danny Alexander is calling on fuel companies to pass on the reduction in oil prices to motorists at the pumps.

Alexander will talk to members of the Highlands and Islands Branch of The Energy Institute in Aberdeen later today (November 6), outlining his plans.

"Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don’t fall as much as they should on the back of falling oil prices.

"I believe it’s called the Rocket and Feather effect. The public have a suspicion that when the price of oil rises, pump prices go up like a rocket. But when the price of oil falls, pump prices drift down like a feather.

"This has been investigated before and no conclusive evidence was found.

"But even if there were a suspicion it could be true this time it would be an outrage.

"So I will be writing tomorrow to the major players involved in the distribution and sale of petrol& diesel seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible.

"When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather.

"I have made sure over the last four years that Government has helped with the cost of fuel. And when the Oil price falls, industry must do all it can to help too. It is in your interests that this happens."

According to analysis by the AA, 65% out of the 124.22 pence average paid for a litre of petrol is tax.

Meanwhile, the RAC Foundation is worried George Osborne could increase fuel duty.

Stephen Glaister, director of the RAC Foundation, said: "Ironically, some of what motorists have gained from falling oil prices could be taken by the Chancellor.

"If the cost of oil drops just a few more dollars, and Mr Osborne sticks to his 2011 plans, then fuel duty is in line for a 1.7p a litre increase. That is unlikely to go down well with 38m drivers who have recently had some relief at the pumps.”


Click here for fuel and fuel cards best practice and procurement insight

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

  • Sceptic Mike - 06/11/2014 12:36

    What sort of investigation do they do? phone up the nearest petrol station and ask' do you keep the prices high despite cost of oil? as every driver knows that companies don't reduce their prices till one maverick chain of stations decides to make their prices cheaper than the others to draw in trade then slowly others follow but don't rush to it hoping that the price of oil will leap up again meanwhile. Funny that the downward cost of fuel on motorways dosent seem to shift much but then its a captive market so will mostly ignore this hoping the price of oil will climb again. Same old argument, we cant reduce our prices as we bought fuel in at a higher rate, but when they buy at the lower rate, they are quick to put the price up accordingly

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee