A rise in fuel thefts is keeping inflated petrol and diesel prices higher for longer as the Iran conflict continues to drag on.
While pump prices for petrol and diesel are starting to show signs of easing after rocketing to four-year highs in recent weeks, they are not falling as fast as they should because forecourts are having to absorb the cost of rising criminality.
‘Bilking’, the action of not paying for fuel at a filling station, increased by 13 per cent in the 50 days following the outbreak of conflict between the US and Israel against Iran, according to industry reporting.
With the Strait of Hormuz – the vital waterway transporting oil supplies out of the Middle East – still closed, there are concerns among retailers that fuel thefts with become more common as the cost of fuel remains stubbornly high.
According to the RAC Foundation, Britons motorists have paid a ‘war premium’ on fuel prices of £1.62billion since 28 February.
Of this, £1.21billion has been felt by drivers of diesel vehicles, of which the majority are operated by businesses who are passing higher costs onto consumers through increased product prices.
Research by debt recovery firm Forecourt Eye shows that there has been a surge in drivers who concede they can’t afford to cover the cost of fuel and thieves who simply drive off without paying.
North Wales Police last week released footage of a pyjama-clad woman who is wanted on alleged petrol thefts in Gwynedd
On Wednesday, the average price of a litre of petrol was 157.3p. While this is 24.5p higher than it was on 28 February – when the US and Israel launched their first strikes on Iran – it is around 1p less than the peak price seen on 15 April.
Diesel, however, is still far higher.
The UK average price is now 189.9p, according to the RAC. This is a 47.5p per litre premium compared to costs seen at the end of February and just over 1.5p down on this month’s peak.
Despite the slight dip in pump prices, nationwide analysis shows 114 filling stations are still charging £2 or more a litre for diesel, while a further 4,354 are selling the fuel for between 190p and 199.9p.
RAC head of policy Simon Williams said: ‘We hope drivers will see the average price of petrol fall by at least 3p a litre and diesel by double that in the coming days.
‘Drivers understand retailers have had no option but to put prices up due to the cost of oil being so much higher and they’re also suffering with fuel theft as widely reported this week, but as wholesale prices reduce so should forecourt prices.’
Forecourt Eye’s report says there are around 179 daily cases of fuel theft taking place currently. This equates to around 6,900 litres of stolen fuel every 24 hours
According to Forecourt Eye’s analysis of 500 filling stations across England, Scotland and Wales, incidents of ‘means of no payment’ (when driver say they can’t afford to pay) rose by 20 per cent from 28 February to 19 April.
This is up from 44 cases to 53 daily.
Drive-offs are also up by 10 per cent, from 114 to 125 per day.
Together, the total number of incidents rose from 158 to 178 daily. This equates to around 6,900 litres of fuel stolen every 24 hours, with the cost associated coming out of the pockets of retailers.
Forecourt Eye said the majority of cases identified were committed by first-time offenders, which have been rising by 16 per cent since the war started.
Last week, North Wales Police released CCTV footage of a woman in pyjamas wanted for fuel thefts from two petrol stations in Gwynedd over the Easter weekend – just one of the numerous cases caught on camera in recent weeks.
But there have also been instances of organised gangs bulk bilking by filling up jerry cans and even plastic bottles hidden inside their vans and cars when they pull into fuel stations.
This is then being sold on the black market at slightly reduced prices.
There too has been an increase in reports of thieves returning to old school methods, targeting unattended vehicles and siphoning their fuel tanks.
Some are drilling holes in the side of petrol tanks to bypass anti-siphoning technology, according to victims who have had their vehicles damaged in Clacton-on-Sea.
Police in Grantham too have been investigating the theft of 25,000 litres of diesel stolen from a haulage firm last month, when hidden pipes were discovered draining the company’s tank. They led back to a vehicle parked in an A1 layby across the countryside.
Forecourt Eye said what initially appeared to be a ‘short-term reaction’ to soaring fuel prices has now become a ‘sustained and accelerating shift in fuel theft and payment avoidance’.
Michelle Henchoz, Forecourt Eye’s managing director, said: ‘The most alarming aspect is the method being used, with fuel being stored in plastic containers or improvised tanks inside vehicles, which is extremely dangerous.
‘In the event of a collision, the consequences could be catastrophic, not just for those involved but for other road users as well.’
Reports have suggested there’s been a spike in old-school fuel theft tactics, with criminals siphoning petrol and diesel from the tanks of unsuspecting drivers and businesses
Gordon Balmer, executive director of the Petrol Retailers Association, which represents hundreds of forecourts up and down the country, from small independent garages to supermarket retailers, said: ‘The increase in pump prices has been matched by a rise in motorists driving off without paying or claiming they have no means to pay.
‘While we recognise the financial pressures many households are facing, this behaviour is having a direct and immediate impact on forecourt operators.
‘This is not a victimless crime. When fuel is not paid for, the cost does not disappear, it is absorbed by the retailer and ultimately adds to the wider cost of running a forecourt.
‘Many of our members are independent, family-run businesses operating on tight margins. They simply cannot absorb repeated losses without it affecting their ability to serve their local communities.’
The PRA said it is continuing to work with government, law enforcement and industry partners to improve recovery rates and deter offenders, while supporting retailers facing increasing levels of forecourt crime.