The RAC has issued a plea to retailers urging them to cut prices at the pump by 5p a litre — to 150p, to reflect the drop in wholesale costs.
The government brought in a 5p duty cut brought in shortly after Russia’s invasion of Ukraine last year, but the auto group said this is not benefitting drivers struggling to cope with the cost-of-living crisis and, instead appears only to be helping retailers who have chosen to up their margins, the group said.
RAC fuel spokesman Simon Williams said: “Our analysis sadly shows that despite the Competition and Markets Authority’s investigation confirming drivers were being ripped off at the pumps – something we have been saying for years – and the government acting on the findings, nothing has changed.
“Drivers are still losing out massively when wholesale prices come down. But in Northern Ireland where the supermarkets don’t dominate fuel retailing drivers are getting fairer deal with a litre of unleaded costing 150p and diesel 157p – 5p less than the UK average.”
RAC data shows the big four supermarkets’ margin on petrol has been around 14p this month compared to an average of 7p so far this year. This is up from just 3.4p for the whole of 2019.
“Drivers and, indeed, the Treasury should be furious that the 5p-a-litre duty cut, which has been in place since the end of March 2022 is not being passed on at forecourts,” added Williams.
In response, Asda told the BBC its prices were around 4p per litre cheaper than the UK average; Tesco, Sainsbury’s and Morrisons didn’t comment.
Fuel prices have been in focus in recent weeks as the conflict in Israel threatens to spill into the Middle East, a key oil-producing region.
Brent crude prices dipped last week — also put under pressure by the “higher for longer” stance the US Federal Reserve has taken on interest rates.
