Fuel Prices: Too Expensive?

Fuel prices have fluctuated for a long time now, but why? 

Photgraph by Sebastian Avery

By Sebastian Avery

It is a topic always on the lips of the great British public, and this week is no exception. It was the news that fuel prices rose to over 140p a litre (148p for diesel), which will no doubt leave even more Brits feeling the pinch. People always have their own opinions on why fuel prices fluctuate so much. So I took to the streets of the Sharrow area of Sheffield to see just what the people thought and what effect it has on them.

So we collared the Sheffield locals to see what they thought of the most recent rise in fuel prices:

Dean, a builder from Sharrow;
“I drive a van everywhere, so we are constantly filling it up. We notice every penny it increases.”

Brian, a city centre banker;
“I don’t notice the prices intentionally. Obviously it’s always in the news so I’m aware of it.”

Danielle, a student;
“I don’t drive, I just know its an issue and its really expensive.”

Jessica,a supermarket worker, from Handsworth;
“I have to drive in to work all the time, so I always have to buy petrol. I’m always looking for the cheapest price.”

WHY DO FUEL PRICES FLUCTUATE SO MUCH?
There are two main reasons why fuel prices are constantly changing;
1. The price of crude oil
2. The price of refined petrol and diesel on the world market.

The market for selling and buying fuel is influenced by a number of factors. 

The market for refined fuel has the largest influence on what companies pay for fuel. As with crude oil, the market moves with global supply and demand. When the cost of refined fuel rises, companies pay more. And when it drops, companies pay less.A combination of the cost of crude oil and refined products are a significant factor, determining what it costs to fill your car.

The next most influential factor on the price at the pump is the US/NZ exchange rate. As oil and refined products are sold in US Dollars. 

As mostly all crude oil is imported, the cost of international shipping also has an effect on the price at the pump.

INFORMATION PROVIDED BY BP