Drivers buying less fuel as petrol prices remain elevated - Share Talk

Drivers buying less fuel as petrol prices remain elevated

Drivers avoided filling up at petrol stations last month as soaring fuel prices triggered by the Iran conflict prompted motorists to delay purchases, according to the AA.

Official figures showed motor fuel sales plunged 10.2% during the month, marking the steepest decline since the Covid lockdowns of 2020.

The sharp fall followed a surge in fuel purchases during March, when drivers rushed to fill their tanks ahead of anticipated price increases at the pumps.

AA spokesman Luke Bosdet said many motorists had hoped the Iran conflict would move towards a ceasefire, potentially allowing petrol prices to ease.

He argued that retailers risked damaging demand through so-called “rocket and feather” pricing behaviour, where forecourts raise prices rapidly when wholesale costs increase but cut them only slowly when costs decline.

Bosdet said aggressive price increases may initially encourage motorists to fill up early, but can subsequently lead to a sharp drop in forecourt visits and reduced opportunities for retailers to generate additional in-store sales.


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