Connect with us

Business

UK petrol prices are closing in on all-time high, warns RAC

petrol prices

UK petrol prices are closing in on all-time high, warns RAC

Petrol prices could reach all-time highs before Christmas, the RAC warned, signalling “misery” for motorists still reeling from the fuel shortage crisis.

Amid signs that the number of petrol forecourts running dry was easing, the drivers’ organisation warned that anxiety about whether motorists could fill up their tanks was likely to be replaced by concern about how much it would cost.

The average price of a full tank was already about £12 higher in September than a year earlier, the RAC said, with rising oil prices putting more upward pressure on pump prices.

Both petrol and diesel had already reached levels last seen in autumn 2013 and were closing in on the all-time record set in April 2012, the RAC said. Petrol was less than 6p below the record of 142.48p a litre.

Unleaded petrol rose by 1.5p in September to 136.83p a litre, 22p more expensive than last year, while diesel rose by 2.5p to 139.25p, a rise of 21p on 2020 prices. This took the cost of filling a 55-litre tank to £75.26 for petrol and £76.59 for diesel – for each about £12 more than last year.

The RAC said the increases were not connected to the fuel shortages that had affected forecourts across the UK in recent weeks caused by a shortage of tanker drivers and panic-buying by motorists.

The organisation instead linked the prices to the cost of oil, which increased 10% in September and moved above $80 (£57) a barrel this week. The Wall Street bank Goldman Sachs has predicted further rises, to $90 (£66), by Christmas.

The RAC’s fuel spokesperson, Simon Williams, said that oil demand was outpacing supply as economies begin to pick up pace amid eased Covid restrictions, with the increase exacerbated by Opec opting not to increase oil flows significantly this week.

He said: “[The trend] looks likely to spell further misery for drivers at the pumps as we head towards Christmas … If this were to happen we could see the average price of unleaded hit a new record of around 143p per litre. Diesel would shoot up to 145p, which is only 3p off the record high of 147.93 in April 2021.”

Williams added that, despite a few isolated cases, more expensive pump prices were not due to retailers exploiting the fuel shortages to take advantage drivers.

Shortages were easing on Tuesday, as the Petrol Retailers Association (PRA) said that about 64% of fuel stations in London and south-east England, the regions worst hit by the crisis, had both petrol and diesel available; previously the figure was 62%. Just 15% were dry, an improvement on Monday’s 20%, while further 21% were offering either petrol or diesel, up from 18% a day earlier.

However, the PRA executive director, Gordon Balmer, said those regions were still lagging behind the rest of the country, despite the deployment of soldiers to drive fuel tankers so as to plug a persistent shortfall of HGV drivers that had also affected supply chains in the retail and food sectors.

The RAC said its breakdown service had attended 13 times as many cars that had run out of fuel as usual.

Williams said: “As forecourts’ fuel stocks return to normal drivers will inevitably switch from worrying about whether they can get the petrol or diesel they need, to just how much a fill-up is costing them.

“Drivers in London and the south-east will undoubtedly feel particularly hard done by as they are still experiencing problems with getting hold of fuel while also paying the highest prices in the UK.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

8 + five =

Business

British pound plunges to new low as tax cuts spark concern

British pound plunges to new low as tax cuts spark concern

The British pound fell to all-time low against the U.S. dollar early Monday after Treasury chief Kwasi Kwarteng pledged a sweeping package of tax cuts, fueling concerns about the government’s economic policy as the United Kingdom creeps toward recession.

The pound fell as low as $1.0373, before rallying to $1.0672 in early London trading. It was its lowest level since the decimalization of the currency in 1971.

The British currency has lost more than 5% of its value against the dollar since Friday, when Kwarteng announced the biggest tax cuts in 50 years. It comes as the government plans to spend billions of pounds to help consumers and businesses struggling with high energy bills that are driving a cost-of-living crisis. The combination sparked investor concern about spiraling government debt.

Kwarteng and Prime Minister Liz Truss, who took office three weeks ago, are betting that lower taxes and reduced bureaucracy will spur economic growth and generate enough additional tax revenue to cover government spending. Economists suggest it is unlikely the gamble will pay off.

Opposition Labour Party economy spokeswoman Rachel Reeves said Kwarteng had “fanned the flames” of instability by talking up more tax cuts and said the government’s policies were “reckless.”

When grilled about his economic policy Sunday, Kwarteng said he believed the government was acting responsibly.

“There’s more to come,” he said in an interview with the BBC. “We’ve only been here 19 days. I want to see, over the next year, people retain more of their income because I believe that it is the British people that are going to drive this economy.”

As it is cutting taxes, the government plans to cap electricity and natural gas prices for homes and businesses to help cushion price rises that have been triggered by Russia’s war in Ukraine and have sent inflation to near a 40-year high of 9.9%.

This program will cost 60 billion pounds, and the government will borrow to finance it, Kwarteng said Friday.

He said Sunday that it was the right policy because the government needed to help consumers squeezed by the unprecedented pressures caused by the war in Ukraine and the COVID-19 pandemic.

Britain can afford the cost because its debt as a percentage of gross domestic product is the second lowest among the Group of Seven large industrial economies, Kwarteng said. In the coming months, the government will announce plans for reducing the nation’s debt, he said.

When grilled about his economic policy Sunday, Kwarteng said he believed the government was acting responsibly.

“There’s more to come,” he said in an interview with the BBC. “We’ve only been here 19 days. I want to see, over the next year, people retain more of their income because I believe that it is the British people that are going to drive this economy.”

As it is cutting taxes, the government plans to cap electricity and natural gas prices for homes and businesses to help cushion price rises that have been triggered by Russia’s war in Ukraine and have sent inflation to near a 40-year high of 9.9%.

This program will cost 60 billion pounds, and the government will borrow to finance it, Kwarteng said Friday.

He said Sunday that it was the right policy because the government needed to help consumers squeezed by the unprecedented pressures caused by the war in Ukraine and the COVID-19 pandemic.

Britain can afford the cost because its debt as a percentage of gross domestic product is the second lowest among the Group of Seven large industrial economies, Kwarteng said. In the coming months, the government will announce plans for reducing the nation’s debt, he said.

“Obviously, I will be setting out plans for the medium-term fiscal plan, as we’re calling it, that will show that we’re committed to net debt-to-GDP to be falling over time,” Kwarteng said.

The pound’s decline against the dollar also has been fueled by the Bank of England not keeping pace with the U.S. Federal Reserve’s efforts to rein in inflation. Britain’s central bank on Thursday raised interest rates by half a percentage point, compared with large three-quarter-point increase by the Fed last week. But U.K. inflation is the highest among major economies, and the bank has predicted a recession later in the year.

While the pound’s slide has accelerated in recent days, the currency has fallen steadily against the dollar for more than a year as investors sought the security of U.S. assets amid the economic shocks from the pandemic and the war in Ukraine.

The British currency has dropped more than 24% against the dollar since its recent peak of $1.4181 on May 27, 2021.

Continue Reading

Business

37 firms get licences to produce 762.3MW

37 firms get licences to produce 762.3MW

Fresh licenses and permits have been issued to 37 companies to produce a total of 762.3 megawatts of electricity in order to boost power supply across the country, data obtained from the Nigerian Electricity Regulatory Commission showed.

An analysis of the commission’s latest Fourth Quarter 2021 Report on Sunday also indicated that the metering of power users dropped by 71.86 per cent when compared to the number of those who were metered by power distribution companies in the preceding quarter.

In the new report, the NERC said, “The commission approved the issuance of four new generation licenses with a total nameplate capacity of 508.5MW and the renewal of two existing licences in 2021/Q4.

“The commission also granted an aggregate capacity of 253.75MW captive power generation permit to eight companies and approved 25 mini-grid permits.”

It stated that 46 metering service providers consisting of 17 installers, 15 manufactures, two vendors and 12 importers were also approved by the commission in 2021/Q4

“The commission granted a total of 85 licenses and permits in 2021/Q4,” the report stated.

On metering, it stated that the huge metering gap for end-use customers was still a key challenge in the industry.

“A total of 81,084 meters were installed in 2021/Q4, as compared to the 288,154 meters installed in 2021/Q3,” the NERC stated.

Providing an explanation for this, it said, “The reduction in the number of meter installations in 2021/Q4 was largely driven by the winding down of the NMMP (National Mass Metering Programme) phase zero.

“The commission’s records indicate that, of the 10,514,582 registered energy customers as at December 2021, only 4,773,217 (45.40 per cent) have been metered compared to 42.93 per cent metering as at September 2021.”

It, however, stated that as a safeguard against overbilling of unmetered customers via estimation, the commission had set maximum limits to the amount of energy (energy caps in kWh) that might be billed to unmetered customers.

“The cap for each customer is set based on the customer category, consumption of metered customers on the same feeder and the customer’s tariff band.” the NERC stated.

It added, “The caps are computed based on three-month data of actual consumption records of metered customers on the same feeder.”

On customer complaints, the regulator stated that in 2021/Q4, cumulatively, the Discos received 222,639 complaints from consumers, as this was 24,479 (-9.91 per cent) less complaints than those received in 2021/Q3.

“In total, the Discos resolved 212,382 complaints corresponding to a 95.39 per cent resolution rate. Metering, billing, and service interruption were the prevalent sources of customer complaints, accounting for 58.83 per cent of the total complaints during the quarter,” it stated.

Continue Reading

Business

Ethiopian Airlines Wins Bid For Nigeria Air

The Federal Government has selected the Ethiopian Airlines (ET) Consortium as preferred bidder for Nigeria Air.

Minister of Aviation, Sen. Hadi Sirika disclosed this in a media briefing on Friday in Abuja.

He said ET scored 89 percent out of 100 as regards the technical bid and 15 out 20 as regards financial bid.

Mr Sirika said the Request for Proposal (RFP) under the Public-Private Partnership (PPP) Act, governed by Infrastructure Concession Regulatory Commission(ICRC) regarding the Nigeria Air was now completed.

He said, “After a careful, detailed and ICRC governed selection process, Ethiopian Airlines (ET) Consortium has been selected as preferred bidder, offering an owner consortium of 3 Nigerian investors.

“The Nigerian investors are MRS, SAHCO and the Nigerian Sovereign Fund (46%), FGN owning 5% and ET 49%. The consortium has been subject to a due diligence process.

“The contract will be negotiated between consortium and FGN leading to a Full Business Case (FBC) which will be expected to be approved by the Federal Executive Council (FEC). We expect this process to take 6-8 weeks.”

The minister said the national carrier would be launched with three Boeing 737-800 in a configuration very suitable for the Nigerian market.

Mr Sirika said Nigeria Air will be launched with a shuttle service between Abuja and Lagos to establish a new comfortable, reliable and affordable travel between the two major Nigerian Airports.

“The first aircraft is ready to arrive in Abuja for the further work and NCAA inspection, demo flights and audit as part of the AOC requirements.

“In time, two others will arrive to complete the required three aircraft for a new AOC holder. The interim executive team has prepared, with the support of FAAN.

“The team has arranged for Terminal C at the Abuja Airport and finalised a contract with MMA 2 terminal in Lagos, for the operation of an initial shuttle between Lagos and Abuja,” he said.

The Operations Control Centre (OCC) at the Abuja Airport would act as Headquarters of the airline.

Continue Reading
Advertisement

Trending