Petrol prices up despite oil slump

19/02/2009

Despite the slump in crude prices and the cost of other derivatives such as heating oil, petroleum prices have risen five per cent over the past month, the AA has found.

According to the group, the average retail price of unleaded petrol stood at 90.9 pence per litre, up 4.3 pence on the 86.6 pence typical pump price recorded in mid-January.

"Petrol prices have risen by nearly 5 per cent in the past month, compared to the current UK inflation rate of 3 per cent," the organisation claimed, adding that DERV prices have also risen, albeit more modestly.

The rise in petrol costs has been attributed to low stocks of the distillate throughout Europe.

By comparison, DERV stockpiles have remained at the high end of the range expected for this time of year.

High stocks typically depict lower demand, which in turn has a dampening effect on prices at the pump.

In the US, the Energy Information Administration has shown that stocks of crude, petrol and DERV all rose last week as the demand slump continues.

However, heating oil stocks were found to have diminished.