The Prime Minister David Cameron says PETROL executives should be JAILED.
The London offices of BP and Shell have been raided by the European commission who’s said its officers carried out “unannounced inspections” at several offices of BP and Shell in London, the Netherlands and Norway to investigate claims they may have “colluded in reporting distorted prices to a PRA to manipulate the published prices for a number of oil and biofuel products”.
The government has also launched an investigation into potential rigging of the oil market because the price oil traders pay for oil is linked to a number of benchmark indices, the best known of which is Brent Crude.
The commission said the alleged price collusion, which may have been going on since 2002, could have had a “huge impact” on the price of petrol at the pumps “potentially harming final consumers”.
Now oil price fixing investigation have extended to trading houses Glencore, who’s merged with Xstrata, Vitol, Gunvor and Mercuria.
An EC spokesman said: “Even small distortions of assessed prices may have a huge impact on the prices of crude oil, refined oil products and biofuels purchases purchases and sales, potentially harming final consumers.”
Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary: “The allegations that have been made about these three oil companies – BP, Royal Dutch Shell and Statoil, as well as the price reporting agency Platts, are extremely concerning.
The whistleblower gave Halfon a statement in which he said the price of oil was being deliberately distorted: ‘I trade the oil market on a daily basis and every day the price is manipulated,’ he said. ‘There is ample oil in the system to satisfy demand at the moment. Profiteering seems to be the only objective.’
BP and Shell declined to comment other than to acknowledge that they were under investigation and that they are co-operating with the relevant authorities.