Friday 5 December 2014

Average US gasoline prices plummet at the pumps, but do we see the same in the UK?


According to the Triple A website (American Automobile Association) prices at US gas pumps have fallen from an average of $3.27 a gallon a year ago to $2.76 today. That is a fall of $0.51. Even better, the fall for just the last month is huge $0.28 a gallon.

So, US gas prices at the pumps have come down by over 15% in the last year and 9% in the last month.


So why is this? Well the price of crude oil has fallen by 34% in the last year, so American motorists might feel a little aggrieved that the cost savings are not being passed onto them.

But what of the UK?

Well, in November 2013 the average price of petrol in the UK was £1.33 per litre and today it is £1.23 per litre. A fall of 7.5%. Wait a minute! A fall of just 7.5% when the price of crude has gone done by 34%? Yes, a larger part of what we pay in the UK is tax, but that shouldn’t matter. Either the government or the petrol companies are ripping us off and not passing on the benefits of falling crude oil prices.

Yes, I know we live in a free market economy, but this is ridiculous.

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