FUEL PRICE REPORT JULY 2008 Drivers were given their first real hope of a turnaround in fuel prices in the first two weeks of July. Not only has the rate of rise fallen dramatically, but most recent prices fell slightly. However, the volatility of the market guarantees that substantial price reductions in the near future are far from certain. Brent crude on 16 July was down $2.56 at $136.19 per barrel. Nationally, unleaded prices have risen by 1.3ppl to 119.5ppl in the past month. Diesel prices have risen by 1.5ppl to 133.1ppl. The price difference between unleaded and diesel has risen from 13.4ppl to 13.6ppl London recorded the highest price for unleaded at 120.3ppl followed by the South East at 120.2ppl. Yorkshire and Humberside and the North West recorded the lowest price for unleaded at 118.5ppl. Scotland recorded the highest diesel price at 133.7ppl. The North West has the cheapest diesel at 132.2ppl. Supermarket prices for unleaded also rose over the month by 1.9ppl to 118.4ppl. The gap between supermarket prices and the UK average for unleaded has fallen to 1.1ppl. Overseas prices have altered slightly. The UK has the ninth highest unleaded price in Europe and the second highest diesel price. Garages and Supermarkets Unleaded 95 Octane Diesel Super Unleaded LPG litres (gallons) litres (gallons) litres (gallons) litres Northern Ireland 120.1 546.0 133.6 607.36127.1 577.8 N/A Scotland 119.1 541.4 133.7 607.81125 568.3 58.2 Wales 119.8 544.6 133.4 606.45125 568.3 53.2 North 119 541.0 132.9 604.18126.3 574.2 56.3 North West 118.5 538.7 132.2 600.99126.9 576.9 55.6 Yorkshire & Humberside 118.5 538.7 132.3 601.45125.6 571.0 54.4 West Midlands 119.5 543.3 132.9 604.18126.2 573.7 57.9 East Midlands 119.4 542.8 132.7 603.27127 577.4 59.7 East Anglia 119.7 544.2 133.2 605.54126 572.8 59.9 South East 120.2 546.4 133.4 606.45126.8 576.4 60.3 South West 119.7 544.2 133.3 605.99126.3 574.2 58.5 London 120.3 546.9 133.5 606.90126.8 576.4 61.3 UK AVERAGE 119.5 543.3 133.1 605.08126.5 575.1 58.7 Per cent taken as Tax 57.0 52.72 54.7 Supermarkets Unleaded 95 Octane Diesel Super unleaded LPG litres (gallons) litres (gallons) litres (gallons) litres SUPERMARKET AVERAGE 118.4 538.3 131.7 598.7 123.2 560.1 54.7 Per cent taken as Tax 57.4 53.12 55.8 The AA Public Affairs Fuel Price Report uses data sourced from Experian Catalist (www.experiancatalist.com) They are an average of mid-month prices from the respective regions.

This month has seen record rises in the price of both petrol and diesel, overtaking last months record increases. The price of crude reached nearly $140 a barrel.

Nationally, unleaded prices have risen by 5.6ppl to 118.2ppl in the past month. Diesel prices have risen by 7.4ppl to 131.6ppl. The price difference between unleaded and diesel has risen from 11.6ppl to 13.4ppl

The South East recorded the highest price for unleaded at 118.9ppl followed by the London at 118.8ppl. Yorkshire and Humberside again recorded the lowest price for unleaded at 116.9ppl. Scotland and the South West recorded the highest diesel price at 132.2ppl. Yorkshire and Humberside still have the cheapest diesel at 130.7ppl.

Supermarket prices for unleaded also rose over the month by 5.8ppl to 116.5ppl. The gap between supermarket prices and the UK average for unleaded has fallen slightly to 1.7ppl.

Overseas prices have risen. The UK has the tenth highest unleaded price in Europe and the second highest diesel price.

(fuel price data is supplied by Experian Catalist in cooperation with Arval UK Ltd)

Rising prices boost Shell and BP

Shell reported record UK profits in January
Oil firms Royal Dutch Shell and BP have made better-than-expected first-quarter profits thanks to the rising price of oil, which is close to $120 a barrel.

Shell made profits of $7.8bn (£3.9bn) in the first three months of the year, up from $6.9bn a year ago.

And rival BP saw its profits rise 48% to $6.588bn (£3.31bn), from $4.4bn.

In January, Anglo-Dutch firm Shell reported annual profits of $27.56bn (£13.9bn) for 2007, a record for a UK-listed company.

BP shares closed up 5.96% in London, while Royal Dutch Shell 'A' shares rose 5.26%.

Price moves

The quarterly results come amid increasing concern at the cost of petrol on both sides of the Atlantic.


HAVE YOUR SAY Oil company profits are justified but the governments slice of the cash we pay per litre is not
Peter, Aylesbury, UK
Send us your commentsIn the UK, average prices have now reached 109.8p a litre for unleaded petrol, equivalent to £4.99 a gallon (4.55 litres), according to the AA.

In the US, where fuel taxes are lower, the average price is now $3.60 (£1.80) for an American gallon (3.79 litres), according to the US Energy Department.

The results also follow a strike by oil workers at the Grangemouth refinery in Scotland, which had disrupted fuel supplies and halted much of the UK's North Sea oil production.

Some petrol stations in Scotland and northern England had introduced rationing or raised prices.

The price of oil prices has been rising steadily since January, when it broke through the $100-a-barrel mark.

This week the cartel of oil producing nations, Opec, warned that prices could reach $200 a barrel.

On Monday, US light, sweet crude hit a fresh record of $119.93 a barrel. Prices rose as traders eyed the disruption caused by the Grangemouth strike and supply problems in Nigeria following pipeline attacks.

However, the oil price slipped to $117.64 a barrel in Asian trade on Tuesday.

Difficult year

Shell chief executive Jeroen van der Veer said he would continue to grow the firm after a "good operating performance".

Shell shares are listed in the UK and the Netherlands, while the company's headquarters are in The Hague.




Royal Dutch Shell A shares
Royal Dutch Shell B shares
BP shares

BP's strong figures come after 12 months of turmoil for the firm, which announced a fall in 2007's annual profits in February. At the time it also announced that it was to cut 5,000 jobs.

Other low points have included receiving a $50m fine for the 2005 Texas City refinery explosion in which 15 people died.

This was part of a larger $373m fine by the US Department of Justice for committing environmental crimes and fraud, and included a fine for price manipulation.

And in May last year, the company's boss, Lord Browne, resigned after lying to a court in an attempt to block stories about his private life.

'Oil scarcity'

For a litre of petrol costing 108 pence, approximately 33 pence goes to the oil company, 9 pence to the retailer, 50 pence fuel duty to the Chancellor of the Exchequer, and 16 pence VAT to the chancellor.

Simon Wardell, oil analyst at Global Insight, said the rising price of petrol was "predominantly down to high oil prices".

"Oil prices are high because of the weak dollar and because reserves are under pressure, there is a slim spare capacity margin - Opec does not have a great deal more oil to pump," he said.

"That scarcity is reflected in the high oil prices."

But he said that oil firms could not sit back and just watch the profits flow in.

"Oil firms have to think about the long-term investment, and what prices might be in the future."

The earnings results come ahead of other earnings data in coming weeks from industry figures including US giants Exxon Mobil and Chevron, UK gas firm BG Group and France's Total