RAC: Pump price drops slow in June as retailers refuse to pass on wholesale savings in favour of taking bigger margins

• Petrol goes up by a penny to 143.9p while diesel drops by 1.2p
• Unleaded 5p too expensive: diesel 6p too dear
• Drivers could save up to 6p a litre – or £3.30 a tank – every time they fill up by using the free myRAC mobile app

Following this week’s landmark Competition and Markets Authority (CMA) announcement revealed that supermarkets have upped their margins on fuel, RAC Fuel Watch data* shows the price of petrol rose in June for the first time in eight months despite wholesale costs meriting further reductions at the pumps.

Unleaded increased by nearly a penny (0.7p) to 143.9p, while diesel came down by 1.2p to 145.46p at the end of month, making eight consecutive monthly reductions. RAC Fuel Watch also reveals that on average retailers are making a margin of around 12p a litre on petrol and 13p on diesel compared to the long-term margin of 7p, further underlining the CMA’s findings.

And with the CMA announcing that drivers lost out to the tune of £900 in 2022 as a result of supermarkets inflating their margins by 6p a litre, the RAC is giving drivers the power to recoup a similar amount per litre every time they fill up by launching the most up-to-date, freely available fuel finding app in the UK.

The myRAC Fuel Finder**, which is free for anyone to download and use, enables drivers to find the cheapest petrol and diesel wherever they are, saving up to 6p a litre – or as much as £3.30 for every full 55-litre tank***.

The RAC’s analysis of possible savings found that by using its app a litre of diesel could be bought for 6p cheaper than the local average price, while petrol could be found at 5p less. This means diesel drivers who fill up once a week could save up to £172 a year by using myRAC while those with petrol cars could benefit to the tune of £143. Those who only head to the pumps every fortnight could save £86 a year on diesel and £71.50 on petrol.****

While prices have fallen dramatically since the record highs of summer 2022, RAC Fuel Watch data found the big four supermarkets, which dominate fuel retailing, were slow to pass on reductions in wholesale costs this year, particularly for diesel – a point the RAC made clear in its submission to the CMA investigation. As a result, the RAC is warning drivers not to automatically assume the biggest retailers are the cheapest place to buy fuel as their forecourt prices can vary significantly from supermarket to supermarket and from area to area, sometimes even within just a few miles.

RAC fuel spokesman Simon Williams said: “June marked the end of the price of petrol falling at the pumps, purely because retailers are taking more margin per litre than they used to. Looking at the wholesale price of both petrol and diesel which is almost identical, average forecourt prices should be 5p lower for petrol and 6p for diesel.

“While the CMA’s findings should lead to lower prices in the future we are giving drivers the ability to save money right now via the new Fuel Finder feature in the free myRAC app. Having been monitoring the price of fuel for years, we know how much prices can vary from one forecourt to another, so we were determined to give drivers an easy way to make sure they get the best deal possible at the pumps.

“The myRAC app can help drivers save up to 6p a litre compared to the average prices in most areas. And savings can often be far greater than that, particularly with diesel which has been overpriced on so many of the country’s forecourts this year due to its wholesale price being lower than petrol’s for the last three months, with many retailers sadly not passing this on to their customers.

“We firmly believe that having access to a free app like myRAC, which is always up to date, can be the difference between feeling ripped off at the pumps and satisfied you’ve got the best deal possible near you.

“The more people who seek out the lowest prices using it, the more likely we are to see other retailers nearby lower their prices to compete. And, as we know, proper competition is often lacking in UK fuel retailing everywhere but in Northern Ireland where prices are considerably cheaper than on the other side of the Irish Sea.

“We strongly urge every driver to download the free app and start saving money the next time, and every time, they fill up.”

All drivers have to do to start filling up for less is to download the myRAC app from the App Store or Google Play. They will then be able to make up to five searches a day over a two, five or 10-mile radius from their chosen locations. The app will then show them the five cheapest sites near them. To make sure they are getting a good deal drivers can also compare these to the UK average prices for both petrol and diesel which are displayed in the app. The app also remembers drivers’ favourite searches to make it quicker than ever to check prices the next time they need to buy fuel.

Everyone who downloads the myRAC app can set up reminders for their vehicles’ MOT, servicing, insurance and tax. Members can also save time by reporting their breakdowns via the Rescue feature.

By visiting the RAC Fuel Watch drivers can also keep an eye on the UK averages alongside the average price of petrol and diesel at the big four supermarkets and at motorway services. There are also graphs showing average retailer margin and the average prices charged per year since 2000 as well as a daily financial breakdown of the cost of a litre of petrol and diesel.

Regional pump prices

RAC Fuel Watch data for June continues to show a marked difference between fuel prices in Northern Ireland and Great Britain. Petrol was 4p a litre cheaper there and diesel a staggering 7p.

Simon Williams added: “These differences are quite shocking considering all retailers pay the same wholesale prices. It’s interesting to note that Northern Ireland has more retailers per driver and the supermarkets are far less dominant than they are on this side of the Irish Sea.”

Ends

Notes to Editors

* UK national average pump prices quoted are based on Experian Catalist data from 1-31 May 2023. Wholesale prices, oil price and the value of sterling are based on data from 2-31 May 2023

** The myRAC Fuel Finder uses data from Experian Catalist to help drivers find the cheapest fuel near them, or any location they want to search. Experian Catalist collects fuel prices for all main fuel types from just about every forecourt across the UK and updates prices the following day. Prices are updated at around 8am every day of the year, including weekends and bank holidays.

*** 6p saving based on difference between average and lowest diesel price in 20 areas selected at random; 5p average saving for petrol. As of 07/06/23.

**** Drivers filling up a 55-litre diesel car once a week could save £172 a year (6p x 55-litre tank = £3.30 a tank x 52). The saving for a petrol car would be £2.75 a tank, or £143 a year (5p x 55-litre tank = £2.75 x 52).