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Why is the Petrol price increasing?

Updated on May 11, 2011

Fuel Economy

As an avid motorist myself, I thought I would write an article today about my concerns regarding the rise of petrol prices within the UK and worldwide. I have enjoyed driving a classic MGB convertible in the past and often spend time 'cruising' to local beauty spots with friends on the weekend, don't get me wrong though I am not one of those people who drives to the local grocery store instead of walking!

Since January last year I have noticed the unleaded petrol price rise from 85p to nearly £1.20 per liter, that's a rise of almost 35p and it has caused adversities for me when travelling back and forth to work, visiting friends and budgeting my weekly shop. My classic MGB convertible would usually cover 100 miles on £30 but after the price increase I was lucky to get 50 miles and had to sell the car. I have also suffered since renting my own apartment because commuting to work now costs me £25 a week in my 1.4L P reg Vauxhall Astra and I only live 3 miles from the work site. After working out my wages allocated to groceries, bills and savings I am now down to between £50-70 for leisure activities and clothing depending on any overtime I work.

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Price of Petrol

There are probably 2-3 Tescos petrol stations within each UK major city and their catchphrase is 'Why pay more?', and they are one of the better suppliers when the government is penalizing the motorist. Their current price per liter is 115.9p, that is second cheapest in my area but is that because they are a large corporation already cashing in on all household goods and can afford to reduce petrol prices or is it because they really want to help?

Esso Petrol

As we often see at petrol stations they are adorned with streamers inviting the busy traveler to stop by and fill-up and purchase their conveniently prepared snacks and express coffees but it is far from a celebration with the average price of petrol now staggering to almost 117p at my local Esso petrol station. Esso are one of the independent petrol suppliers that are losing out to industry giants BP & Shell and cannot afford to drop or raise their prices.

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Gasoline Prices

Many say gasoline prices rose 40% in 2002 due to the Iraq war, this is because the oil workers in Venezuela were on labor strike and Oil companies such as Exxon-Mobil feared the war would affect the oil trade between the two countries. Iraq is the world's second largest oil resource below Saudi Arabia but most of the reserves haven't been tapped, prior to the war ending 'Haliburton' an oil service company from Texas has been granted permission to operate and develop its potential.

Many of us were lead to believe that the Iraq war was all about human rights, weapons inspections or nuclear capabilities but as you may have realized one of the main people to benefit from this were the oil investors.

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Gasoline Price

Morrison's are the fourth largest supermarket chain in the UK and their catchphrase has always been 'More reasons to shop at Morrison's, well, petrol prices are another reason. They rank one of the lowest prices alongside Salisbury both at 114.9p a liter. Both of these chains seem to brand themselves on family value whilst keeping low prices and I think this wins them a loyal following.

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Shell Petrol

Now to discuss how the price of petrol at the 3 major neighborhood petrol station chains has been effected by the Tax increase, starting with Shell. Whether it is due to Shells recent attempt at putting on a good front I am unsure but they have managed to hold prices to that similar to Tescos at 115.9p, trying to win back loyal consumers from the likes of BP.

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Petrol Price

Texaco who are in fact owned by the Chevron Limited company who supply fuel and other lubricant products to service stations across the UK in a franchise network. This includes equity fuel distributor's and the price per liter can vary from station to station, for example in my area two station's show 118.9p whilst another shows 117.9p.

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BP Petrol

After the recent oil spill which cost BP $22 billion in clean up efforts the price of their fuel has surprisingly stayed at an average petrol price of 116.9p but BP have always been known for upping their price as displayed in the photo above. Don't be surprised to see it creep up after David Cameron's coalition budget in the UK recently, remember to shop around and use your neighborhood petrol station for back up only. I hope this review has been useful and shown insight to all of those eager motorists who don't know what all the commotion is about!

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