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Thursday, 22 February, 2001, 23:04 GMT
Anger at Shell price rise
Shell petrol station
Shell says it doesn't make a profit selling petrol in the UK
Shell has put up the price of unleaded petrol by one penny a litre at 900 of its 1,100 UK petrol stations.

The company blamed the rise on the increase in the cost of refined oil products.

Shell claims that it is not passing on the whole of the three to four pence a litre increase in wholesale petrol prices since the end of last year.


They are playing a very dangerous game and a lot of people will be angry

Fuel protester David Handley
The move came just hours after the government said it was cutting duty on unleaded petrol by two pence a litre until June.

Campaigners involved in last September's fuel protests said they were shocked at Shell's actions, but would give the government a chance to prove itself.

Serious questions

Motorist groups criticised Shell.

"Motorists will be asking serious questions about the excessive profits of these oil companies," a spokesman for the RAC said.

"It seem that they take every single opportunity to raise prices."

Protesters
The September blockades caused nationwide chaos
An AA spokesman said: "Bearing in mind the reduction on the duty, this hike seems very much at odds with what the government has done."

David Handley, former chairman of the People's Fuel Lobby and one of the leading members of last year's fuel protests, said he was stunned by the news.

"I am really absolutely amazed at that ... the arrogance of it following the profits they made," he said.

But he urged fuel campaigners to give the Chancellor Gordon Brown a chance at the Budget.

"If they don't give us what we want at the Budget, they are going to get what they deserve," he said.

'Own goal'

Other petrol giants BP Amoco and Esso said they would monitor prices at a local level but did not plan national price rises.

Ray Holloway, director of the Petrol Retailers' Association, said: "Shell has scored a glorious own goal.

"They obviously have no regard for public opinion, but more likely have planned this action or were caught out by the government announcement," he said.

"Shell were caught off guard by that and forgot totally what they were scheduled to do."

Shell has previously claimed it has not made a profit selling petrol in the UK for at least three years.

It blames high prices for motorists on the level of taxes on fuel.

Shell, BP and Exxon - Esso's US parent - have all announced record annual profits recently.

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See also:

21 Feb 01 | UK Politics
Petrol price cut attacked as 'bribe'
03 Jan 01 | UK
Anger at 'token' petrol cut
20 Feb 01 | Business
Opec, Iraq keep oil prices strong
13 Feb 01 | Business
Q&A: Could oil profits be cut?
13 Feb 01 | Business
BP defends record £9.75bn profit
08 Feb 01 | Business
Shell reports record £9bn profit
24 Jan 01 | Business
Exxon Mobil reaps record profits
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