The RAC is claiming that fuel retailers are not passing on reductions in the wholesale price of diesel to their customers.
According to the motoring wholesale diesel costs have reached their lowest points in 15 months, but it says major retailers are still refusing to cut pump prices in any meaningful way.
In the past four weeks wholesale prices have come down by 10ppl, but the price at the pumps has only come down by 3ppl cut (168.85ppl to 165.89ppl most recently).
In addition the gap between the wholesale cost of petrol and diesel has been narrowing for many weeks and is currently just more than 1.5ppl. but the differential is about 19ppl.
According to the RAC retailers are today taking an average margin on diesel of nearly 19ppl, which is double what they took through 2021 and 2022 (average of 9ppl) and nearly three times as much as they did at the start of last year (average of 6ppl) before duty was cut to 52.95p on 23 March 2022.
RAC fuel spokesman Simon Williams said: “At a time when so many households are struggling with the rising cost of living, we’re pleased the Chancellor did the right thing for drivers and kept fuel duty low in Wednesday’s Budget. Unfortunately though, the pricing tactics of major retailers mean that diesel drivers in particular – including those who work for millions of small businesses – are still getting a really miserable deal at the pumps, and effectively aren’t seeing any benefit from the 5ppl duty cut whatsoever – as retailers are taking nearly four times this amount in margin with every litre they sell. So, in a peculiar way, it feels like it’s retailers who are benefiting from the lower duty cut right now, and not motorists.
“Drivers and small businesses have every right to feel aggrieved. We’re in a ridiculous situation where it would take just one major retailer to do the right thing and cut diesel prices to more sensible levels for a ripple effect to take place across the country’s forecourts, benefiting hard-up households everywhere. Instead, no retailer wants to blink first, with the result being millions of drivers forking out far more when they fill up than they should.
“Two weeks ago, we pointed to how easy it was for retailers to slash diesel prices given how low the wholesale price had fallen. It’s a sad reality that prices have merely trickled down by only around a penny since then. We now hope at least one major retailer finally decides the time is right to cut the prices to more reasonable levels, which will surely mean others follow. If this doesn’t happen, the best drivers can do is shop around and try to find a forecourt that’s charging less than the RAC Fuel Watch average.”
