From the BBC:
Major petrol and diesel distributors are to be called on by Chief Secretary to the Treasury Danny Alexander to drop their prices further in light of recent declines in the cost of oil…
"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket. But when the price of oil falls, pump prices drift down like a feather."
While no research supports this, the thought of this effect creates ill feeling, he will say.
To their credit, the BBC give comparative figures for then and now, as follows:
Oil/barrel (159 litres) - $115, $84
$ per £ - 1.72, 1.60
Pump price/litre - £1.36, £1.24
So in GBP terms, one liter of crude oil cost 42p in June 2014 and 33p now, a drop of 9p. Pump prices should fall by 20% more than that = 10.8p. Prices have actually fallen by 12p.
But the Ginger Rodent is addressing the "Highlands & Islands Branch of The Energy Institute". From personal observation, pump prices appear to be inversely proportional to population density*, so quite possibly people in the Highland and Islands are seeing smaller price falls?
* Because of higher transport costs, same fixed costs over smaller sales, and there being fewer competitors. It's quite bizarre. On a five mile stretch of road out of London, petrol is £1.20 a liter at one end and £1.26 at the other.
Debate Magazine
