The difference between what retailers pay for fuel and what they charge drivers is almost 12p per litre for petrol.
This rises to 18p per litre on its diesel pumps, which is more than double the long-term average, which for both fuels is 8p, according to RAC’s Fuel Watch analysis.
Since 22 April, motorists have felt the pinch from retailers who have kept their margins above 15p per litre for diesel and 10p for petrol.
Supermarkets in particular have been clocking up a 7.8% profit margin this year, compared to just 4% in 2017, the Competition and Markets Authority’s (CMA’s) data found.
The prices of petrol have risen in part due to increasing wholesale costs of oil, which reached $90 per barrel due to conflicts overseas shooting costs up.
Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind
Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with
Sponsored by Post Office
As it stands, the average price of petrol is 150p per litre, and diesel is 157p, but the RAC claims both fuels should be on sale for around 145p.
‘Petrol prices are extremely unfair’
Now that the cost of oil has dropped down to $83 per barrel in the last two weeks, Simon Williams, RAC fuel spokesperson, believes the margins are extremely unfair on drivers.
Williams said: “The big four supermarket retailers, which dominate fuel sales, are once again flatly refusing to cut their prices in the wake of much lower wholesale costs.
“We realise that supermarkets, along with all businesses, have been affected by inflation, but these increases seem blatantly unfair. And, of course, without them cutting their prices, there is little incentive for other retailers to follow suit.
“Having tracked fuel prices against consumer inflation, it’s easy to see the link between the two. We therefore have a strange situation where unreasonably big fuel margins are making inflation higher than it should be.”
The RAC notes the situation is “very concerning” especially following the CMA’s two reports into “weak competition” in the fuel market.
However, the RAC thinks retailers will “still need a little more encouragement” to reduce the cost for drivers to fill up their tanks.
Williams added: “The RAC believes the situation will only be improved in the long term if the CMA as the price monitoring body is able to take meaningful action against retailers whose margins are deemed not to be mirroring significant reductions in the cost of wholesale fuel.”
