- Supermarkets still reluctant to
slash forecourt prices to reflect falling wholesale prices
- One Costco site selling petrol for
142.9p and diesel for 166.9p
The excessive margins being taken on fuel by the UK’s four big
supermarkets have been further called into question today as the
RAC has discovered membership-only retailer Costco has reacted to
the falling wholesale market by cutting its petrol by 8p a litre
to 147.7p* – 12p less than the average price of a litre bought at
a supermarket and 14p lower than the UK average.
The RAC – which earlier this week called on Asda, Morrisons,
Sainsbury’s and Tesco to slash their prices in response to
steadily falling wholesale costs – believes the move by Costco
powerfully demonstrates how overpriced fuel is elsewhere.
The average price of unleaded across the UK stands at 161.90p
while diesel is 186.13p – at one of the four major supermarkets
however, it is only slightly cheaper at 159.75p for petrol and
183.91p for diesel. Diesel at Costco is currently on sale at its
19 forecourts for an average of 171.6p – nearly 14.5p less than
the UK average and 12p cheaper than a litre at a supermarket.
Drivers will be staggered to know that at Costco Chester unleaded
is a remarkable 142.9p and diesel is 166.9p. Drivers filling up
at Costco will generally save more than £6.50 a tank compared to
a supermarket.
RAC fuel spokesman Simon Williams said: “Drivers who aren’t
fortunate enough to be members of Costco will no doubt be
horrified to see just how cheaply fuel can be sold. It’s no
wonder you often see long queues for fuel at Costco. In fact,
they recently had to change the queuing system at their Bristol
forecourt to cope with the number of people wanting to fill up.
“The fact petrol and diesel can be sold for 12p per litre less
than is currently being charged on average at the big four
supermarkets is very concerning. Even accepting Costco operates
on pretty thin margins the supermarkets should be slashing their
prices. On Tuesday this week we called on them to cut by 5p a
litre but since then wholesale costs have fallen even further, so
they should really be cutting by at least 7p.
“Given the huge gap between wholesale fuel prices and the
averages charged by the supermarkets, it could be argued that
drivers are being deprived the benefit of the Government’s 5p
duty cut. This is unfair and we hope it is being duly noted by
both the Government and the Competition and Markets Authority
which is currently investigating UK fuel retailing.
“Other than trying to fill up somewhere cheaper there’s very
little drivers can do to avoid shelling out more than they should
have to in the cost-of-living crisis.
“To rub further salt in the wound, the average price of petrol in
Europe is 158p while diesel is 166p**. Across the Channel in
France unleaded is 148p despite duty on petrol being 61p a litre
and, while duty on diesel is currently charged at 53p – the same
rate as the UK, a litre only costs 159p on average.”
Find out more about UK petrol
and diesel prices on the RAC website.
Ends
Notes to Editors
* As of 10am Thursday 24 November
** EU petrol and diesel prices as of Monday 14 November 2022 -
https://www.rac.co.uk/drive/travel/advice/european-fuel-prices-petrol-and-diesel-prices-in-europe/
