Diesel price – 140.77p (record high 142.17p April 2012)
Petrol price – 132.95 (record high 148.04p April 2012)
Fuel duty and VAT account for about 60% of the pump price of both petrol and diesel.
There are 35 million drivers and 28 million cars in Great Britain. Of the cars, 19 million are petrol and 9 million diesel.
There were 37,000 petrol stations in 1970 but less than 9,000 today.
RAC Foundation work shows that 87% of UK car-owning households are within 5 miles of a supermarket petrol station. 97% of UK car-owning households are within 10 miles of a supermarket petrol station.
According to work done for the RAC Foundation by the consultancy Deloitte, the UK is now a net importer of crude oil and refined diesel. The reasons are two-fold:
1) The UK’s North Sea oil reserves have shrunk steadily.
2) Overall, UK refineries are configured to produce more petrol than diesel, however the demand for diesel has grown over time and the cost of ‘retro-fitting’ our refineries would be prohibitively expensive. Therefore we need to import some diesel to meet our needs.
The Deloitte work shows that ten years ago there were nine UK refineries. Today there are seven. Of these seven, all but one have been up for sale in the past three years.
In 2011 the average household expenditure was £484 per week. £65.70 of this was on transport, 14% of the total.
OFT terms of reference:
- whether reductions in the price of crude oil are being reflected in falling pump prices
- whether supermarkets’ and major oil companies’ practices may be making it more difficult for independent retailers to compete with them
- whether there is a lack of competition between fuel retailers in some remote communities in the UK, and
- whether concerns about price co-ordination and the structure of road fuels markets identified by other national competition authorities are relevant in the UK.