Higher oil prices will mean misery for many UK motorists

10 August 2010 10 August 2010

BonTrade

Higher crude oil prices will mean misery for many UK motorists later in 2010 as UK petrol prices are set to soar higher to over £5.45 a gallon ($8.67 a gallon) later in 2010.

The UK’s RMI Petrol, representing petrol filling stations, forecast a 4p a litre rise and blamed an increase in oil prices as well as exchange rates between the British pound and the US dollar.

RMI Petrol has calculated figures based on current crude oil prices, a three per cent rise would see the fuel costing £1.22 a litre by the end of August 2010.

“The future looks bleak for motorists, with rising oil prices and further tax hikes.” said John Franklin an RAC spokesman.

Petrol prices last reached the same levels in May 2010, when one garage in west London took advantage of spiralling prices to charge as much as £1.46 per litre.

Brian Madderson, chairman of RMI Petrol, blamed the “rebound” in the cost of crude oil and said fuel duty and VAT increases would continue to make it “extremely difficult” for motorists and retailers in the coming months.

The organisation blamed currency movements and world oil price increases and said the rises would add to the pressures being faced by independent retailers.