- RAC warns retailers will lose ‘all credibility’ with drivers
if they don’t pass on wholesale savings at the pumps
- Average retailer margin stands at 19p a litre for petrol and
15p for diesel – making unleaded 12p a litre too expensive and
diesel 10p too dear
- Retailers must cut the price of petrol and diesel this week
or risk losing all credibility with drivers, the RAC is warning.
RAC Fuel Watch data shows
the price of oil fell by $10 a barrel to $73.18 on Friday on top
of already lower wholesale prices meaning petrol is now around
12p a litre too expensive while diesel is 10p too high.
Unleaded is currently at an average of 147.64p a litre and diesel
is 150.85p. However, had the biggest retailers been reflecting
the downward movement in the wholesale market, they should really
be 135p and 141p respectively.
Instead, the RAC says retailers have been living up to the worst
‘rocket and feather’ behaviour by resisting reducing their pump
prices in stark contrast to what they do when wholesale prices go
up - which is to pass on increases daily.
RAC fuel spokesman Simon Williams said: “Ten days ago we
highlighted that petrol was 6p too expensive due to a fall in the
wholesale price. Sadly, the biggest retailers, who lead the
market, have stood strong and taken advantage of their customers
by collecting bigger profits on every litre they sell than they
traditionally do.
“On Friday news of the Omicron Covid variant caused $10 to be
shaved off the oil price leading to a further drop in the
wholesale price of fuel. We estimate that retailers are now
making around 19p a litre which is shocking when you consider
their average margin pre-Covid was 6p. The profit on diesel is
around 15p a litre with a similar long-term average margin to
petrol. Based on the fact the biggest retailers buy new supply
every week we believe unleaded is 12p too expensive and diesel
about 10p too dear.
“While retailers might resent the RAC pointing out that their
fuel is overpriced, this doesn’t change the fact that they should
cut. And if they don’t, we feel they will lose credibility with
drivers, although it’s very difficult for motorists to vote with
their feet because they have nowhere else to go.
“If a substantial cut doesn’t materialise, we feel this is worthy
of government scrutiny as there’s no public body monitoring fuel
prices to see if they’re fair.
“With fuel prices at record highs drivers are in dire need of
some respite at the pumps and now it’s impossible to blame the
prices on rising oil costs. It seems as though retailers think
they can get away with charging more for fuel because of the
public’s general acceptance of rising energy prices.”
Find out more about UK
petrol and diesel prices on the RAC website.
Ends
Notes to Editors
* UK national average pump prices quoted are based on Experian
Catalist data. Wholesale prices, oil price and the value of
sterling are based on data from Fuel Prices Online.
