The AA has once again accused petrol retailers of greed. A report in The Telegraph entitled: “Greedy petrol stations charging 5p a litre more than they should’ claims average pump prices are failing to keep pace with falling costs.
The motoring organisation told The Telegraph that pump prices had fallen by just 1ppl since the start of October, despite an 8p drop in wholesale prices.
AA spokesman Luke Bosdet told The Telegraph: “This can only be described as greed. The fuel trade is dragging its feet on passing its wholesale savings on to customers.”
He continued: “Two features stand out: the fuel trade has been slower in passing on lower costs than it was hiking prices in July, and petrol wholesale costs have not tracked recent oil price increases and are still well down on September highs.
“This makes any failure to bring down petrol pump prices soon a further bad reflection on the fuel trade.”
The PRA hit back pointing out that petrol and diesel prices were subject to multiple fluctuations beyond just the price of oil, including volatile exchange rates.
Gordon Balmer, executive director of the PRA, said: “Cuts to Saudi Arabian crude oil production and increasing instability in the Middle East are putting pressure on fuel prices.
“Additionally, the industry has had to adapt to rising labour costs, increased energy expenses, an increase in forecourt crime and stubbornly high inflation rates.
“Retailers are operating on razor thin margins to ensure that motorists are offered the best deal possible.”
