The Petrol Retailers' Association (PRA), representing the UK’s independent forecourt retailers, has warned that fuel prices are set to rise as conflict in the Middle East continues. The ongoing geo-political tensions have prompted speculation by traders which has in turn forced the price of Brent Crude oil to a six month high of US$115.65/barrel.
An analysis of 515,248 UK police force records obtained by consumer motoring champion, HonestJohn.co.uk, has revealed that cities in the North of England are the worst affected by car crime, with Manchester topping the league table. Between October 2011 and September 2012, 505 offences per 10,000 registered vehicles were reported in central Manchester. This figure is four times the national average for car crime, which HonestJohn.co.uk calculated as 121 offences per 10,000 vehicles. Even taking into account the higher levels of car crimes in urban areas, in part associated with the greater influx of vehicles entering city centres, the rate of reported offences was still 2.1 times the national 'urban' average of 242 offences per 10,000 vehicles.
"Fuel prices are expected to increase throughout the UK as external factors have a great impact on the price of crude oil" said Brian Madderson, Petrol Retailers' Association Chairman. The civil unrest in Syria and Egypt, the reduction by one third in Libya's oil exports and the demand for oil slowly returning to some Asian markets have all had an impact on crude oil prices. The cost of Brent pushed through the critical $110/barrel level last week which equates to a 10 per cent increase since the end of June.
Surprising new data from Government confirms that Supermarkets now have a much higher share of the UK market for retail transport fuels than previously admitted. The latest combined total for petrol and diesel sees an increase to 46.5 per cent in 2012. This compares with the official total of just 39 per cent for 2011 quoted in the Deloitte study and also 39 per cent for 2012 stated in the Office of Fair Trading (OFT) report, such figures were clearly far from being accurate.
The Petrol Retailers’ Association (PRA) fully supports Robert Halfon MP's campaign and petition for a full Office of Fair Trading (OFT) enquiry into Oil Pricing Process. The PRA submitted a formal complaint in February 2012 to the OFT regarding competition in the market for retail road fuels. Its call for a full UK Market Study was supported by many other trade associations and the cross-party group of MPs led by Robert Halfon.
"The unexpected crash in the exchange rate for the Pound for the US Dollar, from US$1.58 to 1.48, in just four weeks from mid-June is hitting wholesale fuel costs", said Brian Madderson, Petrol Retailers’ Association (PRA) chairman.
The Petrol Retailers' Association (PRA) has offered to submit evidence to the European Commission on alleged anti-competitive pricing tactics in the UK fuel market. In a letter to Alexander Italianer, Head of DG Competition at the European Commission in Brussels, Brian Madderson, PRA Chairman, addressed the current EU oil price fixing investigation and offered the PRA's assistance in this important inquiry.
The Petrol Retailers' Association (PRA) has again voiced its concerns about the unpredictability of the wholesale petrol market. In the last seven days there has been a drop by over 2.6 pence per litre (ppl), which encouraged supermarkets to rush price reductions onto their forecourts. However by the start of this week, wholesale costs recovered all that reduction, resulting in a swing of more than 5.2ppl over a few days of trading.
The Petrol Retailers’ Association (PRA) has submitted evidence to the Department for Business Innovation and Skills (BIS) on the state of the UK retail fuels sector. The Parliamentary BIS Select Committee recently launched an inquiry into the UK retail market to question the effects regulations and costs have on the sector.
"Independent petrol forecourts are experiencing a rise in crime rates yet the support of local police forces can greatly differ" said Brian Madderson, Petrol Retailers' Association (PRA) Chairman.
Chancellor of the Exchequer George Osborne has delivered the latest UK budget including the cancellation of planned fuel duty increases. Other key points include confirmation that the income tax threshold will be raised to £10,000 by next year and the first £2000 will be taken off all employers’ National Insurance bills. Growth is forecast to be 0.6 per cent this year, with £3 billion promised for infrastructure investment as a way of improving this. Beer duty will be cut by 1p a pint.
"The initiative by the Australian Competition and Consumer Commission (ACCC) that will see supermarkets stick to helping shoppers with lower grocery pricing instead of subsidising fuel offers is music to the ears of all our small, often family owned and run, petrol filling stations who are facing extinction by the aggressive price discounting from the 'big four' UK supermarkets" said Brian Madderson, Chairman of the Petrol Retailers Association.
"The shock rise in wholesale costs is just one of the reasons why the Petrol Retailers' Assocation (PRA) has been knocking on the door of the Office for Fair Trading (OFT), since this time last year, to demand a full investigation into the workings of the UK market for road fuel" said Brian Maddersion, PRA Chairman.
"Up to one thousand independent forecourt sites will be wiped out by new supermarket forecourts by 2017 unless the Government takes action" said Brian Madderson Petrol Retailers' Association (PRA) Chairman.
The PRA report commissioned from Christie & Co looked at the planning applications for new petrol filling stations between 2009 and the third quarter of 2012. It found that an average of 40 supermarket forecourts were being granted permission each year, and Steve Rodell, director and head of Retail at Christie & Co said: "If applications continue at the same rate, and there is no reason to believe that will not be the case, there will be another 160 supermarket sites by the end of 2016.
The Petrol Retailers' Association (PRA), representing the UK's independent forecourt retailers, welcomes the Deloitte Report 'Study of the UK petroleum retail market'. The report indisputably confirms that the majority fuel forecourts are running with dangerously low levels of stock and that the continued closure of forecourts is reducing onsite storage capacity across the country. The study found that independent forecourts are being forced to cut back stock levels to control working capital costs.
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