Austria has overtaken the UK as the European country with the cheapest pre-tax petrol price according to new data released by the AA. The average price of petrol in the UK - now 138.95p - was the lowest before tax until three weeks ago, thanks mainly to new, competitive legislation introduced by Austria.
Despite petrol in the UK being more expensive on average than many other European countries, much of the price is made up of charges incurred through tax. The new figures prompt questions about the UK's pricing policies says the AA, which until now have been authorities' defence against criticism over unpopular actions.
"The UK fuel industry's main shield against criticism of high prices has been that it sells the cheapest petrol in Europe before tax," commented Edmund King, president of the AA. "Fuel price regulation established in Austria over the past year has blown a hole in that defence. On average, over the past 12 months, petrol prices in Austria were only half a penny more expensive, meaning that they would have wiped the floor with the UK had the euro been slightly stronger than the dollar."
King also said that the UK shouldn't respond to Austria's more favourable pricing policies by rushing to draft a new, more competitive strategy straight away, but said that it does raise questions about how much is being done to protect the interests of the consumer.
PetrolWorld 23102012
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