Road fuel retailers continue to operate with increased margins
that are denying the benefits of lower petrol and diesel costs,
today’s update from the Competition and Markets Authority
confirms.
“Overall, while pump prices for both petrol and diesel have
increased since May 2023, this can be divided into two separate
periods. During June, July and August, this appears to have been
driven primarily by increased crude oil prices and, in the case
of diesel, refining spreads, both of which are driven by global
factors. Retail spreads were around the long-term average for
petrol, and below that level for diesel. During September and
October, however, we have seen significant increases in retail
spread for both petrol and diesel. In both cases, the retail
spread at end-October was significantly above the long-term
average.
While the retail spread does increase and decrease in response to
volatility in wholesale prices, we would expect these spreads to
begin returning to normal levels. If retail spreads were to
remain at these levels for much longer, this would cause concern
about the intensity of retail competition in the sector.”
Interim road fuel
monitoring updates: November 2023 - GOV.UK (www.gov.uk)
“As the AA has said in the last month, old habits die hard in the
road fuel trade. Failure to pass on the full savings from lower
wholesale costs to hard-pressed motorists, their families and
businesses is unacceptable in a cost of living crisis,” says Luke
Bosdet, the AA’s spokesman on pump prices.
“The Government needs to speed up the legislation that creates
the statutory fuel price transparency scheme. The AA has been
testing public responses to the profiling of cheapest pump prices
across an area or along a route. The feedback from drivers is
that they want more transparency.”
