Lack of fuel price reductions criticised by RAC

UK fuel prices remained static in July despite falling wholesale costs, according to the RAC.

The motoring organisation said an average diesel price of 149.8p per litre, and an average petrol price of 144.76p per litre, should be reduced to 142p and 140p respectively, based on average retailer profit margins currently running at 14.5p and 13p, versus 8p usually.

RAC head of policy Simon Williams said: “It’s disappointing to see fuel prices remain far higher than they should be, especially after the Competition and Markets Authority (CMA) announced at the end of July that drivers were overcharged by an astonishing £1.6bn last year.

“With our analysis clearly showing margins are still significantly above the long-term average, it seems like nothing has changed and drivers continue to lose out despite all the ongoing scrutiny from the CMA and the government.

“Coupled with this, the wholesale fuel market is trending lower due to the price of oil falling by $6 to around $80 at the end of July. This in itself ought to lead to lower prices at the pumps but, as the CMA made clear in its report, competition in fuel retailing is extremely weak. 

“As a result, we sadly can’t see pump prices reducing much further without retailers acting on what the CMA is saying and finally introducing some much-needed fairer pricing strategies.”