RAC calls on fuel retailers to cut further, faster as wholesale prices continue to drop

RAC fuel spokesman Simon Williams said: “While retailers are generally a little slower at passing on savings in the wholesale price of fuel than they are increases, they did have a fairly good recent track record of cutting prices reasonably quickly. But their unwillingness to cut further and faster this week sadly is proof that ‘rocket and feather’ pricing does exist and motorists are being ripped off at the pumps.

“Currently, the wholesale price of a litre of unleaded is 89p, add to that 7p a litre for delivery and retailer margin and VAT, and you get a forecourt price of 115p, yet the average price being paid at the pumps is 118p. Supermarkets understandably operate on lower margins due to the greater volume of fuel they sell so their prices should be even lower – at around 112p. Interestingly, the wholesale price of diesel is now a penny cheaper than petrol at 88p so there’s really no excuse for seeing it priced higher than unleaded on the forecourt.

“The extra margin being taken by retailers on every litre of petrol and diesel means that for every motorist filling up a 55-litre vehicle they are currently making an additional £1.65 profit.

“Motorists deserve to be treated fairly which is why we are once again urging retailers – but especially supermarkets as they lead the market and benefit from selling the most fuel – to be more transparent and cut the price of both petrol and diesel.”