Fuel prices down again, but diesel still too expensive, RAC says

The average price of both diesel and petrol at UK filling stations fell for the fourth month in a row in February, according to the RAC.

The motoring organisation said the average price of a litre of diesel came down by 3.19p during the month, to 167.19p, while the average litre of petrol came down by 1.26p to 147.72p.

However, the RAC reiterated its previously stated position that the cost of diesel is too high relative to petrol, costing 20p per litre more despite the difference in wholesale price being only 6p.

RAC spokesman Simon Williams said: “A reduction in pump prices would normally be extremely welcome news for drivers, not least in a cost-of-living crisis that is making the price of so many everyday items and services much more expensive than normal. But while our analysis shows drivers of petrol cars are paying a fair price at the pumps, the same sadly can’t be said for anyone whose vehicle runs on diesel.

“Retailers really ought to demonstrate they’re on the side of drivers by cutting their diesel prices now – not least as the wholesale price is on a par with where it was 12 months ago, yet the price they’re charging drivers at the pumps remains needlessly high.”

In addition, the RAC has warned price increases could be one the way from the UK Government’s upcoming Budget, unless the Chancellor decides to keep the 5p duty cut put in place a year ago, and cancel the annual planned hike.

Williams said: “While we accept the 5p cut introduced last year can’t last forever, with household finances under even more pressure this Spring than they were a year ago, we don’t think now is the time to be removing it.

“To decide to raise prices by 5p on both fuels would prove punishing to households and businesses struggling to make ends meet, and may have a detrimental effect on both inflation – which the Government is desperate to bring down – and the wider economy. In the case of diesel, it would also mean the UK has the highest fuel duty rate in the whole of Europe.

“We also hope Mr Hunt isn’t about to become the first Chancellor in 12 years not to cancel the annual planned fuel duty rise. If he were to go ahead with it, untold damage could be caused.”