Fuel fury as prices for consumers 'fall like a feather' despite plunge in oil costs
The RAC says there was a small fall in the average price of petrol and diesel in May - but not enough.
Bristol resident ‘bracing herself’ for fuel prices
Petrol retailers, including supermarkets, are once again accused of failing drivers amid claims they are not passing falls in oil prices.
The RAC says there was a small fall in average petrol prices and diesel costs in May – but not enough.
The motoring organisation is concerned retailers are dragging their heels on cutting prices, with little competition taking place
The average cost of a litre of unleaded finally dropped by 2.4p last month, from 150.31p to 147.88p, saving drivers around £1.30 a tank.
The reduction at supermarkets was smaller at just 1.2p (147.31p to 146.15p). Average diesel prices dipped further by 4.5p, from 158.06p to 153.58p, although again supermarkets cut by less at 3.4p a litre, from 154.93p to 151.49p.
The RAC said the margin between what retailers are paying for fuel and what they are charging drivers is running well above historic levels.
It said the figure on petrol is around 13p a litre and an even higher 16p a litre on diesel, which compares to an historic average of 8p.
In the past Asda always led the way on lower fuel prices as a way to get people through the door, however this is no longer the case.
Instead, the other three supermarkets that make up the ‘big four’ – Tesco, Morrisons and Sainsburys – are selling petrol for an average of 2.1p less per litre (145.25p per litre, compared to Asda at 147.38p) and diesel for 2.5p less (150.45p per litre, compared to Asda at 152.98p).
The lowest and fairest average UK fuel prices by far are to be found in Northern Ireland where a litre of petrol retails for just 141.4p (5.7p less than the rest of the UK) and diesel at 142.5p (9.9p less than the rest of the UK).
Looking at England, the cheapest petrol is currently on sale at under 139p a litre at locations in Bishop Auckland in County Durham and St Leonards-on-Sea in East Sussex. In Scotland, diesel is under 143p a litre in Arbroath.
RAC senior policy officer Rod Dennis said: “A month of decreasing fuel prices should be seen as a good one for drivers, but the sheer time it is taking for any meaningful price reductions to reach forecourts is if anything a continuing cause of concern.
"When it comes to much-needed pump price cuts, it’s sadly a case of too little, too leisurely, with most drivers still getting a miserable deal every time they fill up.
“We’re once again in classic ‘rocket and feather’ territory, with pump prices only trickling down when they should really be falling like a stone.
“What’s more, not only have wholesale prices been coming down consistently for over a month, but the average margins taken by retailers are still so much bigger than in the past. This means pump prices are at levels much higher than we ought to be seeing, which is all the more concerning given drivers are meant to still be benefiting from a 5p a litre duty cut introduced more than two years ago.”
He added: “It’s also interesting to see that Asda no longer holds the crown for selling the cheapest fuel, despite the pledge made when it was subject to a merger a year ago.”
The other three major supermarkets, as well as some enterprising independents, now offer lower prices. But with only a few exceptions, there doesn’t appear to be much in the way of price competition taking place.
“The CMA now has the powers it needs to take a closer look at what’s going on across the country when it comes to fuel retailing. In the short term, this should mean greater visibility of pump prices for drivers – and the far fairer prices that those in Northern Ireland continue to enjoy. But crucially, it should also mean it can identify occasions where wholesale price drops aren’t being properly reflected at the pumps, something our analysis shows is sadly still happening.
“What’s more, whichever party takes power after next month’s General Election will have the prickly job of deciding what to do about the supposedly temporary cut in fuel duty. Looking at the UK’s current pump prices, it’s easy to forget this cut is meant to ease the cost of refuelling right now. As a result of the energy price crisis, many governments across Europe have since increased their duty rates again after previously helping drivers.
“Yet in the UK, diesel prices are still higher than anywhere else on the continent and petrol prices are still among the top-10 most expensive.”
