A decline is being witnessed in fuel sales in Britain as the petrol demand in the country slashed by about 20% in May 2008 over May 2007, says IEA.
As per the International Energy Agency (IEA), petrol retailers in the UK have revealed that fuel sales slumped radically and the recent statistics seem to indicate a 20% decline in demand for petrol in May 2008 over May 2007, informed petrol retailers, according to the news published by Telegraph.
According to IEA officials, the cost of unleaded petrol in the UK increased by around 20% in May 2008 over May 2007, which is quite higher than across the continent where nearly 14% of oil price rise has been witnessed. Also, the price of per liter petrol increased by about 106.8% in March 2008 over 92.8% in March 2007 and in May 2008, it increased by around 117%. The cost of filling up a family car now costs over US$ 92.86 (£60).
Moreover, the high cost of crude oil is identified by the petroleum industry experts as a major factor for the low sales of petrol in the country as drop in stocks of fuel in main oil producing companies is leading to rise in prices of crude oil. Also, due to scarcity of oil in these countries, producers need to drill the earth surface deeper, which costs very high to the producers and thus, leads to a rise in the overall cost of oil production.
Furthermore, the introduction of new oil extracting technologies in the oil industry is a significant reason behind the drop in sales of petrol in the UK. The declining value of dollar in comparison to euro is deteriorating the UK’s financial condition and thus, resulting in a decline in sales of petrol. Also, efforts of the UK government for developing green fuels and imposition of regulations on automobile industries for using green fuel are also declining the demand for petrol in the country.
According to a Senior Research Analyst at RNCOS, “A continuous decline can be witnessed in the UK petrol industry due high oil prices in the country. However, due to higher petrol prices, various new technologies, alternative sources of transportation, and cheap sources of energy are being developed, which is not only good for the environment but also for the financial status of the country.”
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