The UK ties with Italy to hold Europe’s highest diesel duty rate – now standing at 52.95p per litre. Nonetheless, Italy’s average pump price trails by 7p per litre at only 148p
Drivers in the UK are facing Europe’s steepest diesel prices, according to new research by the RAC.
The RAC say that there is “no good reason” for the UK’s fuel vendors not reducing pump prices. Their analysis of prices revealed a litre of diesel at British petrol stations averages 155p.
This is 5p pricier than Ireland and Belgium, who share the rank of Europe’s second most costly diesel at 150p per litre. Despite the 5p duty reduction on every litre of fuel in spring 2022, the UK ties with Italy to hold Europe’s highest diesel duty rate – now standing at 52.95p per litre. Nonetheless, Italy’s average pump price trails by 7p per litre at only 148p.
France’s duty is just 1p per litre less than ours, but their average diesel price is 9p cheaper at 146p per litre. This reveal is rooted in data from the European Commission and the UK’s Competition and Markets Authority. Figures from the Government disclose that diesel-powered cars comprise about a third (11.4 million) of all the vehicles that are licensed in the UK. Almost all commercial vehicles – think vans and lorries – run on diesel too.
Simon Williams, the RAC’s spokesman for fuel matters, dubbed the UK’s crown as the home of Europe’s priciest diesel as “a very dubious honour”. He announced: “The average retailer margin on diesel that’s the difference between the delivered wholesale price and the retail price before VAT is 18p.”
“That’s a shocking 10p more than the long-term average. The average price of a litre of diesel should really be down to around the 145p level if retailers were charging fairer prices.”
He added: “The margin on petrol is also, in our view, unreasonably high at 13p. We can see no good reason why retailers in Britain aren’t cutting their prices at the pumps.”
Mr Williams highlighted the disparity in fuel prices across the UK: “It’s important to note that in Northern Ireland, where there is greater competition for fuel in the absence of supermarket dominance, the average price of diesel is just 144.9p 10p less than the UK average, and petrol is 6p cheaper at 142.4p.”
Despite this, the UK’s petrol prices remain relatively competitive within Europe, ranking as only the 11th most expensive at an average of 149p per litre. In comparison, Denmark currently holds the title for Europe’s most expensive petrol, with drivers typically paying 175p per litre.
However, independent fuel retailers in the UK have argued that they are grappling with a number of rising costs, including business rates, energy bills and wages.
Mr Williams concluded: “There is cause for hope for fairer fuel prices in the future as the Digital Markets, Competition and Consumers Act became law on Friday, giving new powers to the Competition and Markets Authority to closely monitor road fuel prices and report any sign of malpractice to the Government.”
