Petrol Prices

AA uneasy with future of UK fuel production

27 April 2010

Healthy profits were announced today by BP, a UK company which needs huge financial resources to satisfy global energy demands, says the AA. However, the UK's biggest motoring organisation is becoming increasingly uneasy about the future of fuel production for the country's motorists at a time of record pump prices.

"We accept that, following the 2008 collapse of fuel prices, refiners had to revive profit margins to stay in business, but question whether the recent surge in the petrol wholesale price, from $680 in February to $800 now, has gone too far," says Edmund King, AA president.

"Record petrol prices are due primarily to the weakness of the pound, fuel duty increases and lack of refining capacity. However, the increased wholesale cost will have played its part in the more than 10% cut in petrol consumption by UK drivers in recent months.

With around half of the UK's refineries up for sale and informed commentators predicting that fuel production will head east, the AA is becoming increasingly uneasy about the future for fuel provision, jobs, security of supply and pump prices.

We that hope that the industry will re-settle once the pound strengthens and drivers find pump prices more affordable, but any new government needs to consider the future of UK fuel production.

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3 May 2010