F&I Management & Training

Fuel prices are poised to increase even further as the cost of oil is forced up by fears of Turkish military action in Iraq. With drivers in many parts of the UK paying more than £1 a litre for petrol and diesel at the pumps following the October 1 fuel duty increase, prices may again rise if suppliers are affected by a threatened strike against Kurdish rebels. Crude oil prices in London have reached more than $84 a barrel, having traded at $78.90 earlier in October prior to the Turkish threat. It takes between four and six weeks for increases in crude oil prices to feed through to forecourts, and every $2 rise in the price puts about 1p on the cost of a litre. The AA says that current national average fuel prices are 97.7p a litre for unleaded petrol and 99.8p a litre for diesel. However, the motoring organisation, says that competition between supermarkets is holding back prices.

DATED: 22.10.07

FEED: AW