Criticism of fuel retailers is entirely absent in the RAC’s latest instalment of its monthly ‘Fuel Watch’ initiative, which has previously seen the company compare wholesale and retail prices to estimate operators’ margins while simultaneously accusing them of making excessive profits. This apparent change of heart follows hot on the heels of a comment piece published by Forecourt Trader.
That column branded the firm’s position on fuel operators “untenable”, highlighting that the RAC’s profit level greatly exceeds retailers’ fuel margins.
The piece also argued that comparing wholesale and retail prices to estimate profits is a “rudimentary calculation”. This was subsequently corroborated and expanded on by accountant Jan Mikula, who referred to the “hypocrisy of the RAC”, and criticised its calculations.
The RAC has long set itself in opposition to fuel retailers, regularly issuing to journalists and broadcasters press releases asserting that margins on fuel are higher than the RAC considers they should be.
Mainstream newspapers and television news channels would often run pieces based on these press releases, reaching millions of readers and viewers with stories painting fuel retailers in a poor light.
Yet while every one of the company’s Fuel Watch releases put out over the last six months contained criticism of retailers’ fuel margins, regardless of whether pump prices rose or fell, this trend appears to have now ended.
In its analysis of October’s market the company discusses a “slight” fall in pump prices, estimating unleaded cost an average of 134.97p a litre last month, down from 135.55p in September. There is no mention of retailers or their margins anywhere in this press release.
Forecourt Trader is not alone in highlighting issues with the RAC’s previous position on this topic. In October 2023 the Petrol Retailers Association branded the company “deeply irresponsible” for “attempting to “whip up public anger” with “sensational claims” about retailers’ margins, while in September of this year the PRA commented: “Contrary to the RAC’s assertions, our members continue to price fuel fairly.”
