Drivers paying 20p MORE for diesel despite falling wholesale costs

RAC Fuel Watch analysis shows drivers are paying far more at the pumps for diesel than petrol, despite little difference in wholesale prices.

Diesel Prices Too High

New analysis by RAC Fuel Watch has uncovered a large disparity in the prices being charged for diesel fuel in the UK.

According to the RAC’s latest data, British drivers are currently paying an average of 20p per litre more for diesel than petrol.

This is despite the difference in wholesale costs, where diesel is just 6p per litre more expensive.

Diesel subsidising cheaper petrol

Diesel Prices Too High

The RAC says fuel retailers are making a margin on diesel that is more than twice that on petrol. It believes cheaper petrol prices are ultimately being subsidised by higher diesel costs

RAC calculations show that if diesel was sold at a fairer rate, drivers would need to pay no more than 155p per litre. This would save £7 per fill-up for an average family car with a 55-litre tank.

Instead, diesel drivers are currently paying an average of 168p per litre. Unleaded petrol pump prices are typically around 148p per litre. 

The RAC is urging fuel retailers to follow the lead of Costco, which cut diesel prices by 4p per litre last week.

Time to make diesel cheaper

Diesel Prices Too High

RAC fuel spokesman Simon Williams said: “While our data shows petrol is generally being sold at a fair price at forecourts at the moment, drivers of the country’s 12 million diesel cars – as well as almost every white van driver – have every right to feel hard done by, as they’re paying a huge premium for the fuel that in no way reflects its lower wholesale cost.

“For nearly a month, the gap between wholesale petrol and diesel prices has been less than 10p a litre and in recent days it has reduced to just 3.5p, yet average diesel prices at the pumps remain stubbornly high, having fallen by only 2p since the start of February. The fact membership-only retailer Costco has been able to cut the average price of a litre of diesel by a massive 4p this week shows what’s possible, but we badly need other fuel retailers to treat drivers of diesel vehicles fairly.

“Even though the price of diesel is not being cut as quickly as it should be, the gap between the average prices of petrol and diesel has dropped to less than 20p (19.99p) for the first time since 10 October 2022. If retailers now do the right thing this should reduce significantly, saving drivers who rely on diesel a lot of money every time they fill up.”

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John Redfern
John Redfern
U.S. Editor with a love of all things Americana. Woodgrain-clad station wagons and ridiculous muscle cars a speciality.

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