The PRA has once again urged the RAC to engage in ‘collaborative discussions’ as it loses patience with having to constantly correct erroneous information about fuel prices.
In its latest press release, the RAC said drivers were still paying 10ppl more for petrol than they should be and “drivers are far from getting a fair price on the forecourt despite recent government intervention”.
It said diesel came down by almost 7ppl to 154.40ppl but is also being “overcharged” by 5ppl due to savings from lower wholesale costs not being passed on by retailers to drivers at the pumps.
The RAC claims that average retailer margin on petrol is now 17ppl and 13ppl for diesel, while the long-term averages are 7ppl for petrol and 8ppl for diesel.
“This news comes as drivers are still supposed to be benefitting from a 5ppl duty cut implemented in March 2022,” reported the RAC. “Instead, the figures show it is major retailers which are gaining from this”. The RAC estimates drivers have lost out to the tune of £184m over the past two months as a result not passing on the 5ppl duty cut.
But PRA executive director, Gordon Balmer fumed as he said “it is disappointing that as we work constructively with the relevant Government departments to find a solution, we are forced to constantly correct the record”.
”Our members are small businesses that have worked hard to keep their communities fuelled and fed. Retailers operate on razor-thin margins to stay competitive, despite having to contend with the recent increases in fixed costs.
”I have extended yet another invitation to the RAC to offer a comprehensive understanding of the cost pressures our members face. Our independent retailers operate in a dynamic market, consistently striving to provide fair and competitive prices to consumers.
”We have been working closely with both the Competition and Markets Authority and the Department of Energy Security and Net Zero as they develop their fuel price transparency scheme. Amidst a cost-of-living crisis, the PRA is doing all it can to ensure that motorists have access to the best information possible.
”In the face of ongoing market volatility, our retailers remain steadfast in their commitment to ensuring customers receive the best deals possible. We urge the RAC to accept the invitation to engage in collaborative discussions, fostering an environment of cooperation and shared insights to benefit both the industry and consumers.”
“It is disappointing that as we work constructively with the relevant Government departments to find a solution, we are forced to constantly correct the record.
”I have extended yet another invitation to the RAC to offer a comprehensive understanding of the cost pressures our members face. Our independent retailers operate in a dynamic market, consistently striving to provide fair and competitive prices to consumers.”
The RAC believes petrol should be sold for an average of 137ppl and diesel for 150ppl, based on retailers taking a fairer margin, meaning drivers are currently paying around £5 more than they should be to fill up an average 55-litre family car (£80.62 v £75.35). For diesel, the figure is around £2.50 (£84.92 v £82.50).
In contrast, membership-only retailer Costco is currently selling unleaded for an average of 133.7ppl and diesel for 144ppl – 14p and 11p less than the UK average respectively. In Northern Ireland unleaded is being sold for an average of 141.4ppl and diesel for 149.5ppl – 5.5p and 5p less than the UK average.
RAC fuel spokesman Simon Williams said: “While the price of fuel fell in November, the truth is there is no reason whatsoever for drivers to be jubilant as the data clearly shows they are continuing to get a rough deal at the pumps, unless they live in Northern Ireland. Wholesale fuel costs have been falling for months, so they should be paying around 137p for petrol, instead of a whopping 147p. Diesel is also overpriced at 154.40p when it should be on sale for under 150p.
“This is extremely worrying as the biggest retailers don’t seem to have heeded the warnings levelled at them by Energy Secretary Claire Coutinho at the end of October saying she wouldn’t hesitate to call out those that rip off the public.
“While the Energy Secretary’s action may have encouraged retailers to begin reducing their prices, it’s undoubtedly a case of far too little, far too late. The wholesale market data the RAC analyses shows the true picture and unfortunately, for the Government and drivers, it shows the 5p-a-litre duty cut is not getting to drivers at all, and prices aren’t falling nearly fast enough yet again.
“We’ve contacted her department to explain what’s really going on with a view to prompting greater and more effective intervention. If a price monitoring body had already been set up by now – as recommended by the Competition and Markets Authority and accepted by the Government – then this might have been prevented and people might finally be getting a fairer deal at the pumps.
“We reiterate our call to the biggest retailers to significantly cut their prices to mirror what’s happening with greatly reduced wholesale costs.”
Regional pump prices
| Unleaded | 01/11/2023 | 30/11/2023 | Change | End of month variance to UK average |
|---|---|---|---|---|
|
UK average |
154.41 |
146.95 |
-7.46 |
|
|
East |
155.11 |
147.75 |
-7.36 |
0.80 |
|
East Midlands |
154.45 |
147.47 |
-6.98 |
0.52 |
|
London |
155.02 |
149.24 |
-5.78 |
2.29 |
|
North East |
153.77 |
146.58 |
-7.19 |
-0.37 |
|
North West |
154.17 |
146.29 |
-7.88 |
-0.66 |
|
Northern Ireland |
149.96 |
141.53 |
-8.43 |
-5.42 |
|
Scotland |
153.36 |
145.59 |
-7.77 |
-1.36 |
|
South East |
155.52 |
148.51 |
-7.01 |
1.56 |
|
South West |
154.71 |
146.85 |
-7.86 |
-0.10 |
|
Wales |
153.98 |
145.52 |
-8.46 |
-1.43 |
|
West Midlands |
155.06 |
147.20 |
-7.86 |
0.25 |
|
Yorkshire and the Humber |
153.78 |
146.44 |
-7.34 |
-0.51 |
| Diesel | 01/11/2023 | 30/11/2023 | Change | End of month variance to UK average |
|---|---|---|---|---|
|
UK average |
161.25 |
154.40 |
-6.85 |
|
|
East |
161.48 |
154.66 |
-6.82 |
0.26 |
|
East Midlands |
160.98 |
154.11 |
-6.87 |
-0.29 |
|
London |
162.47 |
156.38 |
-6.09 |
1.98 |
|
North East |
159.93 |
154.13 |
-5.80 |
-0.27 |
|
North West |
160.10 |
153.80 |
-6.30 |
-0.60 |
|
Northern Ireland |
157.63 |
149.79 |
-7.84 |
-4.61 |
|
Scotland |
161.31 |
154.58 |
-6.73 |
0.18 |
|
South East |
162.85 |
155.94 |
-6.91 |
1.54 |
|
South West |
162.10 |
154.73 |
-7.37 |
0.33 |
|
Wales |
161.40 |
153.41 |
-7.99 |
-0.99 |
|
West Midlands |
161.77 |
154.75 |
-7.02 |
0.35 |
|
Yorkshire and the Humber |
161.02 |
154.53 |
-6.49 |
0.13 |
