Fuel Supply Chain Business Boasts of Increased Petrol Profits During Lock-down
UNITED KINGDOM / AGILITYPR.NEWS / May 13, 2020 / Whilst the UK is in anguish and economic decline due to the unforeseen COVID19 tragedy, the Government has reacted laudably with various financial means to help businesses, employers, and employees.
Yet the unchecked big oil brands and their fuel supply chain wholesalers have deliberately profiteered during the crisis. The evidence is incriminatory but ignored by the CMA and the Government too. The magnitude of the profiteering is on a scale that commands independent investigation.
Here are the facts:
- In the 3 months between December 2019 to February 2020 average pump prices against average wholesale prices including all taxes, lead to profit for petrol at 11.5p and diesel 12.6p per litre.
- In the period of lockdown, when oil crashed 53% and wholesale petrol fell 21% (diesel -17%), petrol profits rocketed 124% and diesel was up by 71%
- This table can be downloaded at https://fairfueluk.com/profit-may-11f.png
- During Lockdown, filling up for an average family car cost £7.86 more than necessary because of oil company and wholesale greed.
- Small independent garage retailers have been victims too, as the record falls in oil prices were never passed onto them fairly. Many of these SMEs are struggling and destined to go under.
- A major fuel wholesaler NWF Fuels even boasted in a trading report: “Furthermore, the Fuels business and its customers have benefited from a significant fall in oil prices over recent weeks which will make material contribution to profits in the short term.” ….. “Demand for heating oil increased significantly in March and into April combined with a deep, sharp and sustained fall in the oil price that has enhanced margins. Demand from commercial customers has been significantly reduced given lower levels of economic activity during lockdown.”
Howard Cox, FairFuelUK’s founder said: “Our campaign supporters, including essential workers, nurses, carers, and small businesses are furious that March’s oil price crash has not been honestly reflected in what they pay at the pumps. Petrol should never be more than 96p with diesel 102p max, but average filling-up prices across the UK are nonetheless 10p higher. Each day these unprincipled businesses’ wallets get fatter, it’s gets even more critical that an independent PumpWatch pricing watchdog be in place, to halt this chronic profiteering.”
Quentin Willson of FairFuelUK said: “The big fuel companies should do their part to lower the cost of living, pass on savings to those who need it most and support the smaller independent forecourts. Boasting about ‘enhanced margins’ in these terrible times is heartless.”
Robert Halfon MP said: “In this time of national emergency the big companies should step up to the plate. They must help the Government cut the cost of living and pass on quickly the fall in international oil prices to those who rely on this fuel. When coronavirus is over, those who helped the war effort will be judged. Those who profiteered unnecessarily will face harsh consequences.”
- Full Background Data Links:Download profit comparison table: https://fairfueluk.com/profit-may-11f.png
- Profit comparisons Dec/Feb vs Mar/May - https://fairfueluk.com/profit-may-11e.png
- NWF Boast document: https://fairfueluk.com/NWFGroupPLCTradingUpgradeandCOVID-19ResponseUpdate.pdf
- Wholesale, Pump prices – Petrol: https://fairfueluk.com/profit-may-11a.png
- Wholesale, Pump prices – Diesel: https://fairfueluk.com/profit-may-11b.png
- Petrol and diesel profits – more detail: https://fairfueluk.com/profit-may-11c.png
- Petrol. Diesel profit vs Oil Prices: https://fairfueluk.com/profit-may-11d.png
About Us
FairFuelUK is a public affairs team with no shareholders to satisfy, just an award-winning campaign representing the real concerns of hard-working motorists, families, small businesses, commercial drivers and hauliers across the UK. Decades of fiscal exploitation by successive Governments with little in return warrants the need for FairFuelUK.
FairFuelUK is fronted by popular TV Motoring Journalist Quentin Willson and the Campaign's Founder Howard Cox.
Funding is through support from key founding backers the FTA, RHA and regular donations from supporters. Previous backers have included the RAC, Association of Pallet Networks, UKLPG and others
Since 2010 FairFuelUK has saved drivers over £100bn in planned tax hikes in duty and VAT through constructive and objective campaigning. Now the immediate focus is on stopping those unnecessary tax hikes based on a good intentioned but flawed 'green' agenda. These include new taxes and bans on drivers entering our major cities and potentially adding more costs on diesel drivers by the Treasury. These are new taxes that will not improve air quality, but simply hit consumers and the economy. There are ways to improve air quality without hitting consumers’ pockets.
Current FairFuelUK Campaign Issues include: Fuel duty, VAT on duty - PumpWatch and fuel price transparency - Effective ways to lower emissions but not through tax hikes - Stop the perennial demonisation of van drivers, hauliers and motorists - More investment in UK roads similar to the level of HS2 spend - Establish a long term Government strategic roads transport plan - Halt unnecessary cash generating congestion zones and ULEZ expansion - VED and its future - Influence fairer future road user taxation plans and road funding with fuel duty revenue predicted to decline - Help role out new vehicle technology in a way that does not hit drivers in the pocket - Scrap hospital parking charges - Other related motoring costs and driving issues
Contacts