The RAC has accused fuel retailers of using Brexit as an excuse for not cutting prices and urged them to reduce unleaded and diesel at the pumps, in the wake of falling oil and wholesale fuel prices.
It asserts that the oil price is the biggest factor determining UK fuel prices besides fuel duty, and it is now at its lowest level since early May at around $43 a barrel.
As a result, wholesale costs have been falling for nearly a month and currently stand at 103.65ppl for petrol and 104.32ppl for diesel, but it says pump prices have remained largely static during this time, at around 112ppl on average.
RAC fuel spokesman Simon Williams said: “There is now a compelling case for an immediate price cut of 3ppl off the price of both petrol and diesel at forecourts. That would take average prices down to around 109ppl, and would see some of the most competitive retailers selling unleaded and diesel around 106ppl.
“We would hope that retailers are not taking advantage of public perceptions that fuel prices would rise following the Brexit vote last month, as the wholesale market is clearly showing a downward trend in prices right now. Retailers have a reasonable recent record of passing cost savings on, and we would like to think this is a blip rather than a new norm.
“Another dip in the already low world oil price – driven by oversupply and concerns about the global economic outlook – is putting a lot of downward pressure on wholesale prices, and we believe retailers should now act by passing on the savings they are making to the UK’s motorists.”