RAC targets ‘over-priced’ supermarket fuel as it hails Shropshire indie charging 14ppl below average

 

Shropshire-based independent retailer Grindley Brook Garage has been hailed by RAC Fuel Watch for its low fuel prices, in a report that has brought a smile to the PRA which has lobbied hard to bring greater understanding about how fuel prices are structured - especially for independents - to a wider audience.

However, the latest data from RAC Fuel Watch points an accusing finger at the supermarkets for fuel prices well above the UK average, ”putting off reducing their prices to fairer levels that reflect the lower wholesale market”, creating ”another day of extra profits for them”.

According to the RAC, data from the fuel finder feature in its ‘myRAC’ app shows that independently-run Grindley Brook Garage in Whitchurch is charging just 140.9p for petrol – nearly 14ppl less than the UK average, and equivalent to a saving of £7.50 a tank. The app also shows there are three other independent retailers within five miles selling petrol for well under 150ppl – 5ppl less than the UK average. Diesel at Grindley Brook, run by DA Roberts, is 151.9ppl – nearly 10ppl less than the UK average, a saving of more than £5 on a complete fill-up.

Meanwhile, in the nearest town of Nantwich, just 13 miles away, where there are two supermarket retailers, the cheapest petrol within five miles of the town centre is 152.9p – 7ppl more than around Whitchurch – and the lowest-priced diesel is 159.9ppl, which is 4ppl less than the average near Whitchurch.

Despite the average price of petrol falling by 2ppl in October, bringing an end to a four-month run of rising prices, the RAC believes that most drivers are still paying far too much at the pumps.

Its data shows that the average price of a litre of unleaded fell 2.6ppl from 157.12ppl to 154.53ppl last month, but its monitoring of the wholesale market has led it to the conclusions that petrol ”remains seriously overpriced” and ”should really be on sale for around 145ppl”. It claims that diesel - down by 1ppl to 161.4ppl in October - is also more expensive than it should be and ought to be selling for 156ppl.

In Northern Ireland the average price of petrol on October 31, was 150.02ppl – 4.5ppl less than the UK average, while diesel is 157.48ppl, 4ppl cheaper.

The data shows membership-only retailer Costco is selling unleaded for an average of 141.7ppl at its 20 sites – 13ppl below the UK average with its lowest price being 138.9ppl in Birmingham. Its average price for diesel is 151.7ppl – 10ppl less than the UK average, but its Derby site is selling for 148.9ppl.

However, the average prices charged at the big four supermarkets nationally is 151.72ppl for petrol – down 2.3ppl in October – but almost 11ppl more expensive than independently-run Grindley Brook in Shropshire. Supermarket diesel ended October at 159.24ppl, up nearly 1ppl in the month, but more than 7ppl dearer than Grindley Brook.

 

	Petrol	Diesel	Petrol v UK avg	Diesel v UK avg	Petrol v supermarket avg	Diesel v supermarket avg
UK average	154.5	161.4
Supermarket average	151.7	159.3	-2.8	-2.1
Northern Ireland average	150.0	157.5	-4.5	-3.9	-1.7	-1.8
Costco average	141.7	151.7	-12.8	-9.7	-10.0	-7.6
Independent Grindley Brook	140.9	151.9	-13.6	-9.5	-10.8	-7.4

 

RAC fuel spokesman Simon Williams said: “While four months of rising petrol prices came to an end in October, it’s definitely no cause for celebration that the drop was only 2ppl, as our data shows it should have been far greater. Instead, drivers will be outraged to learn they are still not being charged a fair price at the pumps by the big four supermarkets which dominate UK fuel retailing.

“This is dramatically demonstrated by the fact that one small independent retailer in rural Shropshire is selling petrol for 11ppl cheaper than the supermarkets.

“Our data clearly shows the supermarkets, like all fuel retailers, are benefitting from lower wholesale costs but once again aren’t passing these savings on to their forecourt customers.

“Despite the Competition and Markets Authority’s investigation concluding in the summer that the supermarkets had overcharged drivers by an incredible £900m last year, history sadly seems to be repeating itself.

“Every day the supermarkets put off reducing their prices to fairer levels that reflect the lower wholesale market, is another day of extra profits for them, and another day of drivers having to fork out more money than they should have to for their fuel. This is all made worse by the fact that fuel duty is currently being discounted by 5ppl to ease the burden on drivers in the cost-of-living crisis – a duty cut that drivers simply aren’t benefitting from.

“We highlighted these issues to the CMA, the Treasury and the Department for Energy Security and Net Zero last week, so were pleased to see that Energy Secretary Claire Coutinho has written to retailers making it clear they must pass on savings to drivers otherwise she will name and shame them.”

 

Cheapest forecourts within five miles of Whitchurch (Shropshire), of which none are run by supermarkets

 

Unleaded	140.9	144.9	144.9	147.9	Average 144.7
Diesel	151.9	155.9	155.9	157.9	Average 155.4

 

• Cheapest unleaded fill-up: £77.50 (average £79.56)
• Cheapest diesel fill-up: £83.55 (average £85.47)

 

Cheapest forecourts within five miles of Nantwich, of which two are run by supermarkets (*)

 

Unleaded	152.9	152.9*	152.9*	153.9*	156.9	Average 154.9
Diesel	159.9*	159.9*	161.9*	161.9	161.9	Average 161.9

 

• Cheapest unleaded fill-up: £84.10 (average £85.20)
• Cheapest diesel fill-up: £87.95 (average £89.05)

 

Regional pump prices

Unleaded	01/10/2023	31/10/2023	Change	End of month variance to UK average
UK average	157.12	154.53	-2.59
East	157.81	155.36	-2.45	0.83
East Midlands	156.73	154.73	-2.00	0.2
London	157.37	154.92	-2.45	0.39
North East	156.20	153.78	-2.42	-0.75
North West	156.10	154.21	-1.89	-0.32
Northern Ireland	152.44	150.02	-2.42	-4.51
Scotland	156.38	153.69	-2.69	-0.84
South East	158.42	155.60	-2.82	1.07
South West	157.28	154.92	-2.36	0.39
Wales	156.62	154.35	-2.27	-0.18
West Midlands	157.60	155.01	-2.59	0.48
Yorkshire and The Humber	156.37	153.79	-2.58	-0.74

 

Diesel	01/10/2023	31/10/2023	Change	End of month variance to UK average
UK average	162.37	161.40	-0.97
East	162.50	161.57	-0.93	0.17
East Midlands	161.52	161.20	-0.32	-0.20
London	163.03	162.48	-0.55	1.08
North East	160.89	160.01	-0.88	-1.39
North West	160.85	160.23	-0.62	-1.17
Northern Ireland	158.89	157.48	-1.41	-3.92
Scotland	162.06	161.60	-0.46	0.20
South East	163.98	163.04	-0.94	1.64
South West	162.79	162.31	-0.48	0.91
Wales	162.37	161.55	-0.82	0.15
West Midlands	162.60	161.92	-0.68	0.52
Yorkshire and The Humber	162.25	161.35	-0.90	-0.05