Fuel prices fall again
Fuel prices fell for a third month in a row in January.
According to the RAC, both petrol and diesel reduced by over a penny a litre in January, with the UK average price of unleaded down by 1.32p to 120.92p with diesel dropping 1.27p to 130.01p.
This means it now costs an average of £65.78 to fill up a 55-litre family car with petrol – £6 less than it did at the end of October. A tank of diesel, however, has only come down £3.78 to £71.50 over the same period.
RAC fuel spokesperson Simon Williams said, ‘While it’s obviously good news the price of fuel has fallen for three months in a row, the story behind the simple forecourt average figures is quite disturbing. Looking at the wholesale data over the last two months reveals that we should have been paying far less for our petrol and diesel than we have been.
‘Unfortunately, three of supermarket fuel retailers appear to have changed their pricing policies for the long term by increasing the margin they take on a litre of petrol to about 2p. This has meant the average price of unleaded has not reduced by as much as it should have because smaller retailers nearby haven’t had to lower their prices as much in order to compete.
‘The wholesale fuel market operates very transparently, but the same can’t be said of the retail market. We understand retailers are free to charge what they like for their fuel and that it’s then up to consumers whether they’re prepared to pay their prices or not.’
