35 million motorists make up the Federation Internationale de l’Automobile (FIA) and they have written to the European Union seeking an investigation into our fuel prices. This was instigated after the belief that prices of crude oil were driven by investors’ expectations rather than simply working on supply and demand.
The letter explains how when there was less demand and an exceeded supply the crude oil still increased. Not only do the FIA want an investigation into the rise but they also want an investigation into pricing at the Rotterdam spot market. It is here where cargoes of petrol and diesel are traded.
Affiliated members of the FIA such as the AA have pointed out that between pump prices, wholesale fuel prices and the cost of oil there have been huge discrepancies. There needs to be some form of fuel price regulator. The fuel duty increase plans need to be scrapped and there needs to be a price regulator introduced as well as a publication which lists all the wholesale prices against the pump prices as in the US, Australia and many other countries.
With Europe dropping their prices in line with the wholesale price reductions then you can understand why an investigation has been demanded, Europe has seen a 4.3% drop, the UK has hit an all time high of 54p increase since January.