PRA brands RAC ‘deeply irresponsible’ following 'over-priced fuel' accusations

The PRA has branded the RAC ‘irresponsible’ following today’s accusations that fuel retailers are ‘not playing fair’ with motorists on pump prices, with their ‘unjustifiable’ rises and margins ’higher than they should be’. 

Gordon Balmer, the PRA’s executive director, said: “It is disappointing to read such sensational claims in the media regarding fuel margins. I have consistently reached out to commentators, seeking a rational discussion on this matter. Unfortunately, my requests appear to have gone unanswered.”

He explained that prices of petrol and diesel have continued to rise throughout September, driven by Saudi Arabia’s decision to extend its crude oil production cut until the end of the year and the weakening of Sterling against the US Dollar. 

”Contrary to claims made by the RAC, our members are not unjustifiably pricing petrol higher than needed. Fuel margins have been under pressure due to increased operational costs that our members have had to bear.

”To address rising labour expenses, energy costs, and the highest inflation rates in recent years and reduced fuel sales, margins have inevitably increased. Attempting to whip up public anger by suggesting otherwise is deeply irresponsible.”

He said many of the forecourts represented by the PRA - 64% of all forecourts - are small family run businesses. 

”The PRA remains committed to advocate for our members and promote transparency within the sector. We are willing to engage with any mediator to facilitate a constructive and informed dialogue on these critical issues.” 

The RAC has reported an 8ppl increase on diesel while petrol has increased ”unjustifiably by another 4.5ppl”, which it claimed was 7ppl over-priced.

RAC Fuel Watch said the average price of diesel ”rocketed” by more than 8ppl a litre in September and petrol by 4.5ppl on the back of global oil production cuts which have driven the cost of a barrel close to $100. Diesel shot up from 154.78ppl at the start of the month to 163.11ppl by the close (8.33ppl) making for its fifth biggest monthly rise since 2000. Unleaded went up from 152.49ppl to 157.01ppl (4.52ppl), its 13th biggest monthly jump in price in the past 23 years. 

The RAC estimates it now costs nearly £90 to fill up a 55-litre family diesel car – around £4 more in a month, and the highest cost since April – and more than £86 for a similar petrol car, an increase of over £2 in September and the highest cost since December 2022.

RAC fuel spokesman Simon Williams said: “Drivers are sadly really starting to suffer again at the pumps with September seeing another 8ppl added to the average price of diesel which comes hot on the tail of a similar increase in August. Petrol has also gone up 11ppl since the beginning of August so there’s little respite whichever fuel drivers use.

“Our analysis of RAC Fuel Watch wholesale and retail data shows that petrol is currently overpriced by around 7ppl, although the price of diesel is likely to go up further still in the coming weeks.

“It’s worrying that retailer margin across the UK is higher for petrol than it should be considering the big four supermarkets were told off by the Competition and Markets Authority for overcharging drivers by £900m in 2022. While many have voluntarily started to publish their prices ahead of being mandated to in law, we still have a situation where wholesale price changes aren’t being fairly reflected on the forecourt.

“In the last two weeks the wholesale cost of diesel has become 10ppl more expensive than petrol, yet the gap at the pumps is only 5ppl. If retailers as a whole were playing fair with drivers, petrol would be at least 7ppl cheaper than it is now, down to around 150ppl from its current average of 157ppl.

“The second recommendation from the CMA report was to set up a price monitoring body which this situation demonstrates the need for, as some retailers are clearly inflating the price of petrol. The setting up of this body cannot come soon enough, as long as it has some form of teeth to keep retailers in line.”

Regional pump prices