The noticeable increase in fuel prices is causing much the stir as winter season fast approaches.
Speaking this week, David Blevings, spokesperson for the IPRA explained that the primary driver for such a realisation was the increase in crude oil costs which have recently passed $US 85/barrel for Brent Crude.
“Fuel prices are up 30 percent on this time last year and the primary driver for this is the increase in crude oil costs which have recently passed $US 85/barrel for Brent Crude.
“This represents more than a 50 percent increase since January 2021 and something the retailer has no control over. It has been caused by several factors including a cutback in production from OPEC countries and Russia and global economies staging a rapid economic turnaround after the global pandemic.
“Sadly, there is no immediate solution in sight, and some pundits are speculating that we could see further rises in crude oil costs to $US100/barrel by Christmas.
“It is vitally important that consumers know how the price of a litre of fuel is broken down. Most speculate that retailers are maximising their return on the increasing price; this is not the case. Government taxes make up almost 65 percent of the pump price.
“While we acknowledge that an increase in carbon tax is the Government’s way to encourage consumers to look at alternative options for driving i.e.: electric cars - this is fine in an ideal world where everyone has easy access to electric charge points and cheap electricity; IPRA does not believe we are near that point at this time and a lot of work is still required to encourage consumers to move away from fossil fuels.
“Our belief is that with alternative fuels such as hydrotreated vegetable oil (HVO ) available now and offering an immediate 88 percent reduction in CO2 emissions, liquid fuels will be around for many years to come.
“Government needs to look at a range of options to reduce emissions from transport and offer incentives and subsidies to encourage further development around bio and synthetic fuels,” Mr Blevins asserted.