‘Perfect storm’ forecast as petrol price soars
Blockade of Marseille sends wholesale price up as raised fuel duty adds to UK consumers’ burden
Monday 18 October 2010
Petrol prices are expected to reach an all-time high in the next few weeks as a combination of higher oil prices, raised fuel duty and the blockade of Marseille by French dock workers increase costs at the pumps.
The rise comes at a bad time for beleaguered UK households and the Bank of England, which could be prevented from pumping funds into the economy through further quantitative easing while there are still fears of rising inflation.
Oil prices have jumped by $10 a barrel in the past month, while the fuel duty escalator has added 1p a litre to the price since it began to take effect on 1 October.
The month-long blockade of Marseille, an important port and refining centre, has forced France to import fuel, which in turn has sent the wholesale price of unleaded petrol soaring.