The Petrol Retailers Association (PRA) has criticised the RAC after the breakdown and insurance company claimed that despite petrol and diesel prices falling in August, high retailer margins “are preventing drivers from benefiting from lower prices”.
Data from the RAC indicates that the average price of a litre of unleaded stood at 135.03p at the beginning of August compared to 134.64p at the end, with diesel falling from 142.92p to 142.2p over the same period. These falls were echoed at supermarkets and follow two months of rising pump prices.
The RAC’s head of policy, Simon Williams, says: “While it’s good news that two months of rising fuel prices have come to an end, it’s disappointing that high retailer margins are preventing drivers from benefiting from lower prices.”
Gordon Balmer, the PRA’s executive director, dismisses these claims, stating: “Contrary to the RAC’s assertions, our members continue to price fuel fairly.”
Balmer adds that “comparisons with historic fuel margins do not take into account the significant rise in operating costs faced by fuel retailers”, highlighting pressures such as increased borrowing costs, rises in employer National Insurance contributions, and “record levels of forecourt theft.”
Williams cites the government’s ongoing focus on retail fuel prices, stating: “The Competition and Markets Authority’s latest report confirms that retailer margins are far higher than they were historically, and that competition remains weak.” Balmer says his organisation “will continue to cooperate fully with the Competition and Markets Authority”.
Williams recommends drivers download his company’s free mobile app, which he says “pinpoints good-value forecourts”, while Balmer comments: “For consumers seeking the lowest local fuel prices, we recommend using PetrolPrices.com.”
This isn’t the first time the two groups have locked horns. Two years ago the PRA branded the RAC “deeply irresponsible” over claims retailers were not ‘playing fair’ with motorists.
