Major supermarket retailers hiked fuel prices well above average in December 2020, with only Asda matching the wholesale increase in the price of fuel.
Morrisons, Sainsbury’s and Tesco all put up fuel prices by an average of 3p a litre, which is double the increase in wholesale prices.
Average petrol prices increased from 114.4p to 116.4p in December, with diesel going up from 117.7p to 120p.
Asda was considerably cheaper, increasing petrol just 1.3p from 108.8p to 110.1p a litre, and diesel from 111.8p to 113.4p.
Even though its rivals were less competitive, using a supermarket was still 4p a litre cheaper for unleaded and 4.5p a litre cheaper for diesel.
Offsetting lockdown losses
The RAC suggests retailers may have been trying to protect themselves for what was to come in terms of further coronavirus restrictions.
“It’s very disappointing,” said RAC fuel spokesman Simon Williams.
“While wholesale prices went up very slightly in December, our data shows there should be scope to lower forecourt prices, rather than putting them up.”
While retailers may argue that ‘per litre’ profits for retailers are considerably down due to motorists filling up less – something the new lockdown will compound further – “those who still need to fill up regularly are having to pay more than they should be.
“Our calculations show that both fuels should actually come down by 3p a litre in the next fortnight.”
Mr Williams also warned that when Covid restrictions begin to lift, fuel prices will inevitably go back up.
“A year ago, a litre of unleaded set back drivers 127p and diesel 132p, which is 10p and 12p cheaper than today.”
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