Despite them coming down slightly in April, the RAC said discounts aren’t being passed down to drivers given wholesale fuel costs have been falling for more than a month
Petrol prices are finally falling – but consumers are still getting a raw deal at the pumps.
Despite them coming down slightly in April, the RAC said discounts aren’t being passed down to drivers after wholesale fuel costs have been falling for more than a month.
The average cost of a litre of unleaded finally dropped by 2.4p last month, from 150.31p to 147.88p. This saved UK drivers around £1.30 a tank, with the reduction at supermarkets smaller at just 1.2p – going from 147.31p to 146.15p. Meanwhile average diesel prices dipped further by 4.5p, from 158.06p to 153.58p, although again supermarkets cut by less at 3.4p a litre, from 154.93p to 151.49p.
Data from the RAC said pump prices should be reduced to a much greater extent as currently there is a huge disparity between wholesale prices – those retailers pay to buy the fuel, which have been falling since late April – and what drivers are charged at forecourts.
Retailers are persistently taking far higher margins than they have done historically, with those on petrol currently at the 13p mark and diesel even higher at 16p, despite the long-term margin on both fuels being around 8p per litre.
RAC senior policy officer Rod Dennis said: “A month of decreasing fuel prices should be seen as a good one for drivers, but the sheer time it is taking for any meaningful price reductions to reach forecourts is if anything a continuing cause of concern. When it comes to much-needed pump price cuts, it’s sadly a case of too little, too leisurely, with most drivers still getting a miserable deal every time they fill up.”
Regulator the Competitions and Markets Authority is currently monitoring the UK fuel market.
The RAC analysis also showed Asda has become the UK’s most expensive supermarket fuel retailer. Rival companies Tesco, Morrisons and Sainsbury’s sold a litre of petrol for an average of 2.1p less than Asda at the end of May, the RAC said. The difference in average diesel prices was even steeper, at 2.5p per litre. The RAC said that for many years Asda “prided itself on selling the cheapest fuel”, often being the first supermarket to cut pump prices.
Mr Dennis added: “It’s also interesting to see that Asda no longer holds the crown for selling the cheapest fuel despite the pledge made when it was subject to a merger a year ago. The other three major supermarkets, as well as some enterprising independents, now offer lower prices.” Asda was approached for comment.
