Drivers have been warned they are losing out at pumps as retailer fuel prices remain “far higher” than they should be, according to new research.
The warning comes from the RAC, with the organisation writing to Energy Secretary Claire Coutinho, highlighting the “unreasonably” high prices drivers are facing.
Despite the Government taking steps to ensure retailers make fuel prices publicly available every day, the RAC stated that prices are still too high.
On average, drivers now spend nearly 12p a litre more than at the start of the year with the price of petrol standing at 150p per litre.
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The RAC criticised the Government for not intervening in fuel costs
GETTYThe RAC explained that for fuel to remain competitive and affordable, it would need to drop to at least 145p.
Simon Williams, fuel spokesperson for the motoring organisation, said: “We feel the current margins being charged by larger retailers in particular are extremely unfair on drivers struggling to get by in the cost-of-living crisis.
“The big four supermarket retailers, which dominate fuel sales, are once again flatly refusing to cut their prices in the wake of much lower wholesale costs.
“If they were being fair on drivers, they should already have shaved at least 5p off their current petrol average of 147p and 8p off diesel which averages 154p at a supermarket forecourt.”
Data from the RAC found that supermarkets are charging roughly 11p a litreon petrol and 16p on diesel compared to 3p and 8p in 2019.
Williams added: “We realise that supermarkets, along with all businesses, have been affected by inflation, but these increases seem blatantly unfair. And, of course, without them cutting their prices, there is little incentive for other retailers to follow suit.
“Having tracked fuel prices against consumer inflation, it’s easy to see the link between the two.
“We therefore have a strange situation where unreasonably big fuel margins are making inflation higher than it should be.”
In a bid to combat the prices, the RAC called on the Competition and Markets Authority to take “meaningful action” against retailers whose margins are too high.
Meanwhile, Howard Cox, founder of FairFuelUK, added that the negative impact on the cost-of-living crisis, inflation, logistic firms' viability, and SME profits continue to deepen because “greedy” fuel supply chain businesses know full well they are “arrogantly untouchable”.
He warned that the CMA and the next Government must intervene to see tangible changes for consumers.
Cox remarked: “The CMA and the next Government must introduce tough financial penalties for the decades of relentless profiteering by greedy wholesalers and oil firms at the expense of motorists, hauliers and the economy. This has to stop!”
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RAC noted that supermarkets are charging roughly 11p a litre on petroll
GETTYA Department for Energy Security and Net Zero spokesperson explained that the Secretary has been clear that retailers who “fail” to pass on savings to drivers at the pumps will be “held to account”.
