Replies to post #273317 on $Stock*Shop*Charts*News*Option$

[Stock Lobster]

UK: Misery as petrol to hit £5 a gallon

Costs set to soar

Published Date: 19 April 2008
Source: News Letter
Location: Belfast

MOTORISTS face seemingly endless misery as petrol prices are set to hit £5 a gallon.

While the average petrol price at stations in the Province remains just under £5 a gallon (£1.099 per litre), many stations have already broken that barrier.

The latest average figure of £4.93 per gallon (£1.085 a litre) is set to hit the £5 mark within weeks, with diesel prices "a major worry", according to an industry analyst.

"We are probably heading towards £5 a gallon for petrol in the next three weeks and if they don't hit this price of £1.10 a litre in that time they will most certainly be knocking on the door," said AA Public Affairs Unit spokesman Luke Bosdet.

Major worry

In contrast, diesel is "a big unknown and a major, major worry" and he would not be drawn on what prices it may hit.

Average Northern Ireland diesel prices in recent days were £5.36 per gallon (£1.178 per litre), according to the AA.

Noel Smith, of the Northern Ireland Petrol Retailers Association, said current patterns were not like anything seen in recent years.

Unprecedented

"Normally we expect oil prices to drop now as the weather gets warmer in the US, but we are not seeing that this year," he said.

"A major part of the problem is the huge middle men who don't handle a drop of oil but are speculating on it for profit."

Mr Bosdet said a few years ago there were forecasts of diesel shortages of around 50 million tonnes by 2015.

"The simple fact is that diesel supply is very tight and prices are rising faster than petrol," he said.

"Things have been compounded by the fact that a Finnish refinery burnt down recently."

Credit crunch

Global investors have made things worse by moving money out of the weakening dollar, partly because of US mortgage fears, and into commodities such as oil, he adds.

However, so long as diesel is no more than 10 to 15 per cent more expensive than petrol, he says it will still be more economical for cars.

"The people who will be hit the hardest will be low income rural dwellers who cannot cut back in their budgets but who must take longer journeys into town," said Mr Bosdet.

The full article contains 392 words and appears in News Letter newspaper.Last Updated: 19 April 2008 3:02 PM

http://www.newsletter.co.uk/news/Misery-as-petrol-to-hit.3999762.jp

[Stock Lobster]

UK: Misery as petrol to hit £5 a gallon

Costs set to soar

Published Date: 19 April 2008
Source: News Letter
Location: Belfast

MOTORISTS face seemingly endless misery as petrol prices are set to hit £5 a gallon.

While the average petrol price at stations in the Province remains just under £5 a gallon (£1.099 per litre), many stations have already broken that barrier.

The latest average figure of £4.93 per gallon (£1.085 a litre) is set to hit the £5 mark within weeks, with diesel prices "a major worry", according to an industry analyst.

"We are probably heading towards £5 a gallon for petrol in the next three weeks and if they don't hit this price of £1.10 a litre in that time they will most certainly be knocking on the door," said AA Public Affairs Unit spokesman Luke Bosdet.

Major worry

In contrast, diesel is "a big unknown and a major, major worry" and he would not be drawn on what prices it may hit.

Average Northern Ireland diesel prices in recent days were £5.36 per gallon (£1.178 per litre), according to the AA.

Noel Smith, of the Northern Ireland Petrol Retailers Association, said current patterns were not like anything seen in recent years.

Unprecedented

"Normally we expect oil prices to drop now as the weather gets warmer in the US, but we are not seeing that this year," he said.

"A major part of the problem is the huge middle men who don't handle a drop of oil but are speculating on it for profit."

Mr Bosdet said a few years ago there were forecasts of diesel shortages of around 50 million tonnes by 2015.

"The simple fact is that diesel supply is very tight and prices are rising faster than petrol," he said.

"Things have been compounded by the fact that a Finnish refinery burnt down recently."

Credit crunch

Global investors have made things worse by moving money out of the weakening dollar, partly because of US mortgage fears, and into commodities such as oil, he adds.

However, so long as diesel is no more than 10 to 15 per cent more expensive than petrol, he says it will still be more economical for cars.

"The people who will be hit the hardest will be low income rural dwellers who cannot cut back in their budgets but who must take longer journeys into town," said Mr Bosdet.

The full article contains 392 words and appears in News Letter newspaper.Last Updated: 19 April 2008 3:02 PM

http://www.newsletter.co.uk/news/Misery-as-petrol-to-hit.3999762.jp