This article was last updated on April 16, 2022
Canada: 
Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
The Chief Secretary to the Treasury, Danny Alexander has demanded the petrol companies and supermarkets to lower the fuel prices at the pump as crude oil slumps to its lowest price in four years.
The aim of the move is to ensure making the oil companies to pass on savings to consumers.
Mr Alexander has said that while the price rate for oil has fallen from $115 per barrel to around $84 per barrel, or around 25%, petrol prices have only decreased by almost 6%.
The Treasury secretary has told to be hopeful to secure assurances that savings being made by firms through cheaper oil is passed on to customers so they may also enjoy the slump in global fuel prices.
Even after the retailers Asda, Tesco, Sainsbury’s and Morrisons have announced on Thursday of cutting the petrol price by 1p still Mr Alexander is urging the larger retailers to do the same for the sake of consumers’ benefit.
In Asda’s case, the recent cut in price of petrol will lead to a new price of 119.7p a litre – the first time the price has dipped below 120p in four years – while diesel will be 123.7p.
The major players in the industry have been warned that the Government will be “watching very carefully” to make sure the fall in the price of crude oil is passed on to motorists at the pumps.
Within the recent weeks, supermarkets have steadily lowered their pump prices with the plunge in the international oil prices. But the reduction is not so obvious and the industry has said it is the government’s own fault as they kept the tax rate high.
Mr Alexander said that people would “rightly be angry” if people feel that the prices were not relaxed as much as they should.
Mr Alexander has further told: “I believe it’s called the rocket and feather effect. The public have a suspicion that when the price of oil rises, pump prices go up like a rocket.
“But when the price of oil falls, pump prices drift down like a feather.
“This has been investigated before and no conclusive evidence was found.
“But even if there were a suspicion it could be true this time, it would be an outrage.”
Article viewed on Oye! Times at www.oyetimes.com.
Be the first to comment