Shell pay strike would push diesel “well past” £6 a gallon
A pay dispute between Shell lorry drivers and their employers could leave more than 929 stations across the UK without fuel by next week and push the price of diesel “well past” the £6 a gallon mark.
The latest figures from PetrolPrices.com show that the current national average for diesel is 130.1p – 131.9p is equal to £6 a gallon. Prices have been rising almost every day since 13th April, with the national average price of a litre of diesel rising 22.3p in that period from 107.8p.
Currently 1759 stations (24%) across the UK are already selling at £6 a gallon, but if the strikes go ahead there may be shortages and therefore the average price is likely to rise. The strikes at the Grangemouth oil refinery over pay last month were partly responsible for pushing the price of unleaded through £5 a gallon.
Figures from PetrolPrices.com show that Shell are the second biggest chain with around 929 active sites (only BP have more), and because their stations are often at the lower end of the price spectrum Shell helps to keep the national average low. The average selling price of Shell stations UK-wide is 115.3p for unleaded and 128.5p for diesel – below that of BP, Total, Texaco and Murco.
Talks between Unite, the union representing 500 Shell drivers, and Hoyer, the firm subcontracted by Shell to deliver fuel to forecourts across the UK broke down yesterday.
The lorry drivers claim that their pay in real terms has not increased since 1992, and are asking for a 13% pay increase. Hoyer previously offered a 6% pay rise, and after 4 hours of negotiation yesterday offered another half percent. The dispute is going to Acas next week, but if it is not resolved drivers are planning to strike for 4 days from 13/06/08, and again a week later.
A Unite spokesperson talking to PetrolPrices.com explained that the drivers blame Shell, not Hoyer. “The problem is that Shell are pushing cost cutting from further up the line, leaving Hoyer with no money to increase the driver’s pay.”
However, Shell deny that the dispute is anything to do with them. A spokesperson for the company told PetrolPrices.com: “It is not our dispute. We are not involved – we outsourced our transportation 9 years ago. It’s not our issue. It would be inappropriate for us to take part the discussions.”
Unite are concerned that as a big market player Shell effectively set the delivery contracts rates for other brands. Around 90% of all fuel delivery drivers, Shell and other brands, are Unite members, prompting fears that if the dispute is not resolved other petrol companies may be affected by further strikes.
An official Shell statement said: “We urge both parties to find a way through their differences. It is disappointing that talks between the haulage companies and Unite have broken down. To this end we would encourage both parties to agree to immediate talks at Acas.”
Unite are concerned that as a big market player Shell effectively set the delivery contract rates for other brands. Around 90% of all fuel delivery drivers, Shell and other brands, are Unite members, prompting fears that if the dispute is not resolved other petrol companies may be affected by further strikes.
“At a time when prices are rising at an unprecedented rate and the full effects of oil touching $135 dollars a barrel have not yet filtered through to the pumps, the strike couldn’t come at a worse time for motorists. The pay dispute strikes at Grangemouth oil refinery tipped unleaded over £5 a gallon, and if the Shell strikes go ahead there is no doubt that diesel will push well past £6 a gallon.”
“High fuel prices are driving inflation and making it more expensive for everyone to live so I’m sure motorists will sympathise with the Shell drivers – although at double the rate of RPI they are effectively holding Shell to ransom. If the government stopped pocketing the extra tax it’s getting because of spiralling oil prices and cut fuel tax instead, then Shell drivers wouldn’t need to strike because their cost of living wouldn’t be so high.”
“Everyone’s wages are being squeezed, and until Gordon Brown addresses the underlying problems in the economy you can bet there will be more pay and pension strikes affecting all sectors over the next 6 months.” ~ Brendan Mcloughlin, Founder, PetrolPrices.com
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