According to the RAC, petrol prices should have dropped by an additional 9p per litre due to the significant decrease in oil prices.
Currently, the UK’s average petrol price stands at 145p per litre, following a substantial reduction in Brent crude oil prices to about $75 a barrel. This is a notable decrease from September’s price of around 157p per litre when crude oil was trading near $100.
The RAC argues that if fuel retailers were to pass on their savings fairly to consumers, petrol prices should ideally be around 134p per litre.
This statement comes amidst accusations from competition regulators that petrol retailers are exploiting drivers. A report by the Competition and Markets Authority (CMA) highlighted that fuel sellers’ margins had seen considerable increases, impacting motorists.
The CMA noted in November that the gap between pump prices and the wholesale costs of petrol and diesel had been significantly higher than the long-term average over the past two months.
Simon Williams, an RAC fuel spokesman, expressed disappointment that despite the decline in wholesale fuel prices over several weeks, pump prices haven’t been reduced correspondingly. He emphasized the need for fair pricing, especially given the scrutiny retailers are under from the CMA.
Williams also mentioned that diesel vehicle drivers are not receiving fair prices. He suggested that with genuine market competition, the current diesel price of 155.5p should be much lower.
He anticipates that if retailers act equitably, the average price could drop to around 145p in the forthcoming fortnight.
