Filling stations should think twice before putting up fuel prices, says Petrol Retailers Association<\/p>\n
Last modified on Tue 28 Sep 2021 06.32 EDT<\/p>\n
The boss of the UK\u2019s Petrol Retailers Association has said he does not \u201ccondone profiteering\u201d, as petrol prices reached an eight-year high and many filling stations ran dry amid panic buying.<\/p>\n
Brian Madderson of the Petrol Retailers Association, which represents independent filling stations in the UK, called on them to think twice about putting up their prices.<\/p>\n<\/p>\n
\u201cThe one thing we do not condone is profiteering in situations like this,\u201d he told BBC Radio 4\u2019s Today programme. \u201cMost of our members, the independents, have a regular customer base and if they offend their customer base they don\u2019t deserve to have them when this crisis is over,\u201d he said. \u201cPeople have got long memories and I would urge anybody who thinks about trying to make a fast buck to think again because it just isn\u2019t right.\u201d<\/p>\n
Pump prices for fuel in the UK have reached their highest level in eight years, according to figures from the RAC. They showed the average price of a litre of petrol rose from 135.9p on Friday to 136.6p on Sunday, the highest level since September 2013, as motorists scrambled to fill their vehicles.<\/p>\n
As crude oil prices surged above $80 (\u00a358) a barrel, petrol prices are likely to go up further. Brent crude, the international benchmark, jumped to $80.50 a barrel on Tuesday morning \u2013 a level not seen since 2018.<\/p>\n
Madderson said the situation had not improved since Monday when he observed that between 50% and 90% of petrol stations had run out of fuel. \u201cDisappointingly, the messages I\u2019m getting this morning from our retailers are that panic buying does continue,\u201d he added.<\/p>\n
He said one of the reasons was social media. \u201cAs soon as tanker arrives at filling station, people on social media are advising that a tanker has arrived, and then it\u2019s like bees to a honey pot. Everyone flocks there and within a few hours it\u2019s out again.\u201d<\/p>\n
He said the big oil companies \u2013 Shell, BP and ExxonMobil\u2019s Esso \u2013 were hopeful that a more normal service could be achieved within three to four days, \u201cprovided the panic buying ceases\u201d.<\/p>\n
The government has drawn up a national emergency plan under which half of all petrol stations would become DFSs \u2013 designated fuel stations \u2013 for emergency workers. Madderson said the definition of who is an emergency worker and what credentials they would need to show still had to be worked out. \u201cIt\u2019s a last resort situation and hopefully we\u2019re not there yet,\u201d he said.<\/p>\n
Boris Johnson has ordered the army to remain on standby to help fuel reach petrol stations hit by panic buying.<\/p>\n
Tom Pugh, a UK economist at RSM, formerly known as Baker Tilly, warned the fuel shortages could damage the UK\u2019s economic growth if they extend beyond this week.<\/p>\n