Drivers may soon pay over 150p per litre for fuel following substantial price increases, raising concerns about potential profiteering at petrol stations.
According to the AA, nearly 25% of petrol stations are charging this rate or higher, costing drivers £82.50 to fill a typical 55-liter petrol car.
Recent figures show that the average price for unleaded was 149.2p and diesel 157.7p per litre as of Tuesday, an increase from 145.6p and 154.8p respectively a month earlier, based on an analysis by the motoring group using official data.
This development follows recent comments from the Competition and Markets Authority (CMA), which expressed ongoing concerns about rising profit margins at petrol stations, indicating possible unfair price inflation.
Moreover, there are worries that fuel prices might continue to climb in the near future, with current wholesale oil prices at their highest since last October. Additionally, the US is reinstating sanctions on Venezuela, and Western nations are preparing more stringent sanctions on Iran, another major oil producer.
Currently, a barrel of Brent crude is priced at around $87, but analysts caution that geopolitical tensions could drive the price up to $100 (£80.33).
Luke Bosdet, the AA’s spokesman on pump prices, commented, “Drivers have been startled by the swift increases displayed on the forecourt price boards. The rise of oil prices above $90 a barrel in April has made them anxious.”
The AA’s analysis of CMA pump data across 2,910 forecourts revealed that 693 – roughly 24% – are charging 150p per litre or more for unleaded petrol.
Conversely, only 11 supermarket forecourts are currently pricing fuel below 140p per litre.
Petrol prices today are higher than they were last year. According to the AA, the increased costs are negating the financial benefits drivers might gain from improved engine efficiency during the warmer months. “Currently, what should be more economical motoring is being curtailed by rising pump prices,” the organization noted.
“Last spring, petrol prices were declining and were notably lower than in the spring of 2022. This, coupled with improved fuel efficiency, offered a dual advantage that significantly enhanced motorists’ financial outlook. This spring, however, the situation is quite different,” the AA remarked.
The organization noted that a recent 3.7p rise in the price of unleaded petrol over the past month has erased one-third of the gains made from fuel efficiency.
Mr. Bosdet noted, “The 10p-a-litre increase in petrol prices since the beginning of the year, with over a third of that rise occurring in the last four weeks alone, is disappointing for UK motorists.”
The CMA continues to scrutinize fuel prices following last year’s market investigation, which revealed instances of profiteering. Last month, it reported that petrol retailer margins are still excessively high.
From 2017 to 2023, supermarket fuel margins almost doubled, rising from 4% to 7.8%, while margins at other petrol retailers increased from 6.4% to 9.1%.
The CMA expressed concern, stating, “The ongoing rise in fuel margins indicates that the findings from the CMA’s market study, which highlighted a decrease in competitive intensity in the road fuel retail market, are still relevant.”
