Following the publication this morning of the Competition and
Markets Authority (CMA) report on UK fuel prices, motoring
organisation RAC has responded.
RAC fuel spokesman Simon Williams said: “This is a landmark day
when it comes to fuel prices in the UK. The fact that drivers
appear to have lost out to the tune of nearly £1bn as a result of
increased retailer margins on fuel is nothing short of astounding
in a cost-of-living crisis and confirms what we’ve been saying
for many years that supermarkets haven’t been treating drivers
fairly at the pumps.
“It’s all about action now and we very much hope the Government
follows through with both of the CMA’s recommendation. While
forcing retailers to publish pump prices is a positive step for
drivers, what’s of far more significance is the creation of a
fuel monitor function within government which, we very much hope,
actively monitors wholesale prices to ensure forecourts don’t
overcharge when the cost they pay to buy fuel drops. Without
this, we fear drivers will continue to get a raw deal.
“Data we shared with the CMA shows there have been several
instances of ‘rocket and feather pricing’ when the cost of
wholesale petrol and diesel fell but it took an inordinate amount
of time for supermarket pump prices to reflect this. And on
several occasions, they didn’t ever fully cut pump prices to
reflect just how far the wholesale market had dropped. This is
even the case today with diesel prices as for more
than three months the cost of buying diesel on the
wholesale market has been less than petrol, yet it remains the
case that drivers are still having to pay more for diesel than
unleaded at the pumps. At one point the average margin charged on
diesel was 25p a litre which is more than three times the
long-term margin of 7p. This shouldn’t be allowed to happen,
particularly when the Treasury has reduced duty by 5p a litre to
help households struggling with the cost-of-living
crisis.
“Interestingly, Northern Ireland is a good example of a
competitive fuel market as retailers more closely reflect
movements on the wholesale market. While drivers can research the
best price in their area via a useful online fuel checker, the
main reason for lower prices is a greater number of forecourts
there per driver and the fact that the big four supermarkets
don’t have the same hold on fuel retailing as they do on this
side of the Irish Sea. The new fuel price monitor should
look at price behaviour there to see if there are any lessons to
be learned for the rest of the UK.
“Those wanting to ensure they always get the best price fuel
possible should download the myRAC Fuel Finder app
which is available free of charge to every driver.”
