The average price of fuel fell in August 2019. However, the RAC says drivers should be angry that bigger savings were not passed on, following healthy falls in the wholesale price of fuel.
A litre of petrol dropped in price by just 0.27p during August. Meanwhile, the wholesale cost of unleaded fell by a comparatively massive 4.38p, to 96.57p.
The drop in diesel costs wasn’t so dramatic at wholesale. It fell by 1p, down to 101.12p. Just 0.38p of this was passed on to motorists.
A drop of 2p per litre of petrol would have felt dramatic to buyers on the forecourts. Even this would still only take less than half of that new-found saving at wholesale.
Instead of saving 15p on a 55-litre fill-up of a family-sized car, drivers would be saving a healthier £1.10.
“Drivers have the right to feel angry that the price of fuel did not fall more in August than it did,” said RAC spokesman Simon Williams.
The lowest prices at Asda were a respective 124p and 126p per litre for petrol and diesel. The price of petrol on average for the four biggest retailers was 125.41p – a drop of 0.55p.
Diesel meanwhile was 128.04p – a drop of 0.6p. The biggest savings are at the big four supermarkets – Asda, Tesco, Sainsbury’s and Morrisons.
“With nearly 4.5p coming off the wholesale price of petrol, drivers should have seen, at the very least, 2p a litre being knocked off at the pumps by the end of the month.
“By our calculations, retailers ought to be charging around 126p for a litre of unleaded. As for the supermarkets, they could easily be selling at around 122p.
“The lower wholesale prices seen in August are a result of a 5 percent drop in the price of oil over the month, with a barrel going down from $62.47 to $59.09.
“The other price-determining factor – the sterling US dollar exchange rate – changed very little over the month, leading to a pound being worth $1.21 at both the start and finish.”