The RAC has claimed petrol stations are profiteering from fuel sales in its latest clash with the fuel industry.
The breakdown organisation said margins made by sellers on diesel have been higher than 15 pence per litre since 22 April 2024, and increased last week to 18p. It added that the margin on petrol is now nearly 12p a litre – and has averaged 10p so far this year.
According to the RAC, the average price of petrol currently stands at 150p per litre, while diesel is at 157p. If margins were reduced, it said petrol and diesel prices at the pump could decrease by 10p per litre. Wholesale oil prices have dropped by $7 (around £5.50) per barrel in the last seven days.
The government has proposed introducing a mandatory Pump Watch tracking scheme and the roll-out of a price-monitoring body. However, in a letter sent to Energy Secretary Claire Coutinho earlier this week, the RAC warned that such an organisation must ‘have teeth’ and ‘hold retailers to account’.
“It’s very concerning to see fuel margins at such high levels, particularly as this is happening under the close eye of the Competition and Markets Authority and while retailers are voluntarily sharing their forecourt prices with the intention of increasing competition,” said Simon Williams, RAC fuel spokesperson.
“If the work of the Department for Energy Security and Net Zero and the CMA has had any effect to date on improving fuel price transparency, we ought to see prices at the pumps reduce significantly in the next week due to a sustained drop in the cost of oil. Sadly, we fear retailers are likely to need a little more encouragement before this happens.”
RAC versus the fuel industry
This is not the first time the RAC has hit out against the fuel industry. Earlier this month, it called on the government to intervene to help lower prices and accused retailers of having ‘unfair margins’.
Responding to that claim, the boss of the fuel retailer lobby group said fuel stations are “operating on razor-thin margins” and are doing “all they can to keep prices low for their customers”.
Gordon Balmer, executive director of the Petrol Retailers Association, also took a veiled swipe at the RAC: “It is disappointing that we are constantly having to devote time and resources to correcting the inaccurate narrative offered by some commentators about pump price increases. We are doing all we can through the appropriate policy channels to address this issue, while others would prefer to offer criticism without taking the time to understand how the industry works.”
At this rate, neither organisation will end up on the other’s Christmas card list.
“We’ve been clear that retailers must pass fuel savings to drivers – and that’s why we are making sure there is no place to hide for anyone found to be unfairly hiking up their pump prices,” a Department for Energy Security and Net Zero spokesperson told Motoring Research.
“Our new Pumpwatch scheme will help drivers find the best deal at the pump, by making real-time price sharing mandatory. We’re also taking action to bring competition back to the forecourts with new powers for the CMA to shine a light on any attempt to overcharge UK drivers.”
How to find the cheapest fuel
Tracking down the cheapest fuel locally can save a considerable amount of money. Although a discount of a few pence per litre doesn’t sound like much, every little helps – as one big retailer would say – especially in the long-run.
It is relatively easy to find and compare real-time prices, with a number of price comparison websites offering advice. Petrolprices.com reckons it can save the average motorist £240 over the course of a year. You can enter a postcode and the filling stations appear on a map within a radius around your chosen start point. There’s also a free mobile app.
Meanwhile, if you’re in a new car with internet connectivity via the infotainment system, your route to the cheapest fuel in your area could be very swift, with many cars now accessing online databases of the cheapest fuel stations.
Finally, as well as showing user-based contributions for speed camera positions and accidents, the Waze navigation app displays fuel stations and current prices.
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How to find the cheapest petrol and diesel