RAC demands explanation for high fuel prices

The RAC has issued an urgent appeal to the UK’s biggest fuel retailers to cut fuel prices by 6p a litre to reflect a drop in wholesale costs – and says if fuel prices don’t fall they must explain why not.

Wholesale costs began falling at the start of July and the decreases accelerated even quicker last week.

According to RAC Fuel Watch, the delivered wholesale price of petrol averaged 103p a litre last week, meaning that average retail petrol price should now be under 136p. Diesel wholesale prices have fallen to 106p, meaning retail prices should be 139p.

However, the average price of a litre of unleaded bought at one of the big four supermarkets is 138p while diesel is 143p.

RAC head of policy Simon Williams said: “The biggest retailers’ refusal not to reduce their prices to fairer levels is continuing to cost drivers dear, and it’s all the more outrageous when you factor in the fact we’re all meant to be benefitting from a temporary 5p cut in fuel duty, that looks likely to disappear in the coming months.

“While the Competition and Markets Authority has clearly stated drivers were overcharged last year, it’s blatantly apparent from our data that this problem is persisting this year.”

Fuel prices

“Once again, we urge retailers to do the right thing and reflect the lower prices they’re paying for wholesale fuel on their forecourts. It’s plain for all to see from some of the lower prices being charged around the UK, both across the whole of Northern Ireland and at various other forecourts, that fuel can and should be sold much more cheaply.

“Our analysis shows pump prices at a majority of forecourts should be cut by around 6p for both petrol and diesel. Average retailer margin currently stands at 13p for petrol and a whopping 15p for diesel. This is staggering when compared to the long-term margin figures of 8p for both fuels.

“If prices don’t fall dramatically in the next week or so, we believe the government and the CMA should get all the biggest retailers together to demand an explanation.”