A further fall in wholesale costs for fuel means retailers must cut petrol and diesel prices this week or face losing ‘all credibility’ with motorists.
The warning from the RAC comes as the motoring organisation reveals the average retailer margin for petrol is 19p a litre, with a 15p margin on diesel.
This means unleaded is currently 12p a litre too expensive, while diesel is overpriced by 10p a litre.
“Ten days ago, we highlighted that petrol was 6p too expensive due to a fall in the wholesale price,” said RAC fuel spokesman Simon Williams.
“Sadly, the biggest retailers, who lead the market, have stood strong and taken advantage of their customers by collecting bigger profits on every litre than they traditionally do.”
Omicron sees oil prices fall
The discovery of the Omicron Covid variant saw oil prices fall by $10 a barrel, making wholesale fuel prices even cheaper.
Mr. Williams called the 19p a litre margin “shocking when you consider their average margin pre-Covid was 6p”.
Fuel retailers will resent the RAC’s call, said Mr Williams, but if they don’t cut prices, “we feel they will lose credibility with drivers – although it’s very difficult for motorists to vote with their feet because they have nowhere else to go”.
If cuts don’t materialise this week, added the RAC, the government should step in and scrutinise the sector “as there’s no public body monitoring fuel prices to see if they’re fair.
“It seems as though retailers think they can get away with charging more for fuel because of the public’s general acceptance of rising energy prices”.
Retailers, adds Mr Williams, are very quick to raise prices when wholesale prices go up, which is in contrast to what happens when they fall – the worst ‘rocket and feather’ behaviour.
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