UK drivers 'losing out massively' as supermarkets and retailers told to slash petrol prices
Drivers were overcharged by 6p at the pumps last year
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Fuel retailers are being urged to cut petrol prices by 5p after a fall in wholesale costs to help motorists deal with the cost of living crisis.
The RAC has called on major petrol and diesel retailers to make changes to the cost of fuel, after accusing them of profiteering off drivers.
The motoring organisation found that their margins on petrol are around 14p per litre, double the long-term average of 7p.
Currently, drivers are paying an average of 155.3p per litre for petrol and 162p for diesel, with indications showing prices should fall eventually.
WATCH NOW: Drivers react to petrol and diesel prices
The RAC has argued that petrol prices should fall by 5p per litre while diesel drivers should be handed a 4p drop in costs.
In March, Chancellor Jeremy Hunt announced that the 5p fuel duty would remain for a further 12 months after it was first introduced last year in response to the Russian invasion of Ukraine.
The Government said the move would help drivers save around £200 in fuel prices at a cost of £10billion over two years.
Despite this, the RAC said the fuel duty cut “only appears to be helping retailers who have chosen to up their margins”.
Retailers were in the firing line earlier this year when the Competition and Markets Authority (CMA) blamed them for not helping motorists with prices.
It estimated that the “Big 4” supermarkets overcharged motorists around 6p per litre in 2022, costing them £900million.
Simon Williams, fuel spokesperson for the RAC, said nothing had changed in response to the CMA report, even though the Government vowed to act on the findings.
He added: “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.
“Drivers and, indeed, the Treasury, should be furious that the 5p per litre duty cut, which has been in place since the end of March 2022, is not being passed on at forecourts.”
Motorists in Northern Ireland can make use of the Consumer Council’s Fuel Price Checker, which shows detailed data about petrol and diesel costs across the country.
With most towns and cities required to provide information, retailers have been forced to keep prices low to ensure they remain competitive, further benefitting the driver.
Data from the tool reveals that Newry charges just 143.9p on average for petrol while drivers in Cookstown are paying an average of 154.8p per litre of diesel.
Simon Williams continued, saying: “There is no doubt from studying RAC Fuel Watch data that margins are up across the board, and while retailers argue their costs have increased due to inflation, the irony remains that there is a definite link between pump prices and consumer price inflation.
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Prices in Northern Ireland are cheaper than the rest of the UK
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“A failure to cut pump prices to fairer levels when there is a clear opportunity to do so has the effect of keeping inflation artificially high – which is clearly in nobody’s interest.”
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