The RAC says there is “no good reason” why prices have not been reduced, as wholesale costs have fallen since the end of April. The car group has called on the regulators to take action.
By means of Daniel Binns, business reporter
Monday June 17, 2024 07:42, UK
Fuel retailers have been accused of using the “distraction” of the general election to keep petrol and diesel prices “persistently high”.
The RAC said the cost of refueling at the pumps was “much higher” than would normally be expected as wholesale costs had fallen since the end of April.
The average price of a liter of petrol in Britain is currently 146.3 cents, which the car company says is “5 cents more expensive than it should be”.
It said the average price for the same product in Northern Ireland was 141.1 cents.
Meanwhile, a liter of diesel costs an average of 151.5 cents in Britain – the most expensive in Europe – while the price in Northern Ireland is 141.9p, the RAC claimed.
Head of policy Simon Williams said: “Margins remain persistently high again and drivers are paying the price.
“It is clear from our data that pump prices have not fallen in line with the fall in wholesale prices, so drivers across the UK – with the exception of those in Northern Ireland where fairer prices are being charged – are once again losing several pounds every time they drive. filling up.
“We believe there is no good reason for UK retailers not to reduce their prices at the pump even further.
‘We can only think that they hope that no one will notice because of the distraction of the general election.”
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The RAC said retailers’ margins – the differences between what they paid for fuel and the price at the pump – were 14 pence per liter for petrol and 16 pence per liter for diesel.
The long term average for both fuels is 8p per litre.
Mr Williams said the company hoped that Competition and Markets Authority (CMA) is “aware of what is happening and will use this to align retailers as quickly as possible.”
A regulator’s investigation into supermarket petrol station prices last year found that higher profit margins had led to drivers having to pay an additional 6p per liter for fuel in 2022.
In March the CMA said margins remained “concerning”.
Prices tend to be cheaper in Northern Ireland than the rest of Britain, partly due to competition from petrol stations in the Republic of Ireland.
Independent fuel retailers have said that higher business rates, energy bills and wages have all contributed to higher costs.
Gordon Balmer, executive director of the Petrol Retailers Association (PRA), said: “Current analyzes comparing current fuel margins with historical figures overlook several critical factors.
‘We must take into account the significant increases in operating costs, reduced fuel volumes following the pandemic and the substantial investments required to transition to a low-carbon transport system.
“These factors mean fuel retailers need to earn more from fuel sales to stay in business and invest in the future.”
He added: “The PRA has maintained transparency in its dealings with the government on fuel prices and will meet with officials from the CMA to discuss this further.”
The CMA declined to comment, but the regulator is expected to publish its latest report on monitoring fuel prices next month.