31/05/2011
The European Union has been urged to look into the spiralling costs of fuel by motoring groups who have slammed the lack of transparency in the process of setting prices.
A letter from the Federation Nationale de l'Automobile (FIA) has demanded an EU investigation into how benchmark prices are set in Europe's main trading centre at Rotterdam and the impact of oil speculation on price increases that have hit motorists badly.
The sharp rate of fuel price rise has meant that the average European car now costs over £10 more to fill up than a year ago.
In the UK, petrol prices hit record highs as crude oil costs rose, but have not come down in proportion with the subsequent fall in wholesale oil prices.
The FIA, which represents 35 million members of various motoring organisations, said it wants the EU to look at price-fixing mechanisms in the Rotterdam spot market where Europe's shipments of petrol and diesel are bought and sold.
Werner Krauss, chairman of the FIA Eurocouncil said in the letter that "a platform with such a small volume is doubted to be a representative indicator for the vast European market".
Luke Bosdet of the AA said: "No one is giving us any answers as to why petrol prices are so high. We need greater transparency so that everyone can see we are paying a fair price for fuel".
The organisation has called for an independent regulator to balance the interests of the supplier, retailer and customer.
The British Petrol Retailer's Association, which represents 6,000 petrol station owners, also expressed concern about the issue of transparency. It is to press the UK Office of Fair Trading to look into whether its members are getting a fair deal.
