The motoring association alleges that the average pump price isn’t reflecting the declining costs.
The AA has criticized petrol retailers for not passing on the reductions in oil prices to consumers at the pumps, branding it as “greed.”
Despite a decline of 8p in wholesale prices since the beginning of October, the AA points out that pump prices have only decreased by 1p per litre. There was a surge in road fuel pump prices for 10 weeks starting from the last week of July, which ceased in early October, mirroring the drop in wholesale costs from the end of September.
However, with a nearly 8p decline in the prices retailers pay for petrol, the average price at the pump hasn’t followed suit. The AA’s spokesperson, Luke Bosdet, remarked, “This is sheer greed. The fuel industry is slow in passing on wholesale cost savings to the public.”
The prices of petrol and diesel have experienced instability over recent months, influenced by global oil price shifts.
During the late summer, petrol prices soared from 143.22p per litre on July 19 to a high of 157.12p by October 1.
Diesel prices also escalated, moving from 144.31p on July 18 to a staggering 163.76p on October 7, as reported by the AA.
Mr. Bosdet noted two main observations: firstly, there’s a lag in the fuel sector in reflecting decreased costs compared to the swift price hikes observed in July. Secondly, despite recent shifts in oil prices, petrol wholesale costs remain lower than their September peaks.
He further emphasized that any delay in reducing petrol prices at the pump will tarnish the fuel industry’s reputation.
However, the Petrol Retailers Association (PRA) challenged the AA’s views. They highlighted that both petrol and diesel prices undergo various fluctuations, not just due to oil prices but also factors like erratic exchange rates.
Gordon Balmer, the PRA’s executive director, stated, “Reductions in Saudi Arabian crude oil output and increasing tensions in the Middle East are influencing fuel prices. Moreover, the sector has been grappling with challenges like growing labour costs, surging energy charges, a rise in crimes at fuel stations, and persistently high inflation. Despite these challenges, retailers are striving to provide motorists with the best possible prices, operating on minimal profit margins.”
