Petrol and diesel prices at forecourts across Britain are “far higher than they should be”, according to the RAC.
Wholesale costs have been falling since the end of April, but the distraction of the upcoming General Election means there is little political focus on fuel retailers’ “unreasonably high” margins, the motoring organisation said.
The average price of a litre of petrol across the UK is currently 146.28p, which the RAC said is 5p more expensive than it should be. In Northern Ireland, the average price is 141.1p.
Meanwhile, the UK average price for diesel is 151.5p — 10p more than is charged in Northern Ireland where a litre averages 141.9p.
For the last seven weeks, the UK has had the dubious distinction of selling the most expensive diesel in Europe — 8p per litre more than in Finland, the next most expensive country, and 20p more than the EU average.
Average retailer margins are currently 14p on petrol and 16p on diesel, which the RAC argued is “excessively high” bearing in mind the long-term margins for both fuels of 8p per litre.
“Looking at the big four supermarkets, which dominate UK fuel sales, margins are 12p and 14p versus the 3p and 8p they took in 2019 before the Covid pandemic,” the organisation added.
RAC Fuel Watch data shows that wholesale petrol is currently averaging 108p a litre. With a 10p margin this should lead to an average price of 141p — 5p less than the current UK average. And under the long-term margin of 8p, the average price would be 139p.
RAC head of policy Simon Williams said that the new UK government should ensure that the new Pumpwatch scheme is set up as quickly as possible. Aimed at improving competition in the market, this scheme will require fuel retailers to report their prices within half an hour of changing them so they can be accessed via price comparison sites and apps to help drivers find the cheapest fuel near them.
