UK drivers fund huge profits for petrol stations

Campaigners claim that the Government should investigate retail outlets for overcharging motorists. Profit margins on petrol are now three times greater than the average.

Although wholesale oil prices dropped last week due to the news about the omicron Covid variation, costs at the pump remain the same. According to data from RAC, a tank of petrol costs £7.20 more than it should.

According to the RAC which tracks consumer prices, forecourts have a margin of 19p per litre on petrol and 15p for diesel after the oil price crash. It said that this is three times the usual margin for petrol and two-and-a-half times the usual margin for diesel.

Simon Williams, RAC’s Simon Williams, said: “Retailers need to cut fuel costs or they will lose their credibility.” We will speak to the Government and demand an inquiry if nothing happens within the next few days.

“Drivers need some relief and it’s difficult to blame rising oil prices for the rise in prices. Retailers seem to think that they can charge more simply because the public accepts rising oil prices.

Williams stated that retailers had a margin of 9p per litre before wholesale prices dropped, which was 3p more than the long term average. RAC stated that unleaded currently costs 148p per litre and super-unleaded 160p per litre. Diesel is 151p.

After crude oil prices hit $85 per barrel, petrol prices hit record highs. It dropped to $73.18 Friday.

Gordon Balmer of the Petrol Retailers Association said that around two-thirds of forecourts are represented by this group. “Our members typically buy fuel from their fuel suppliers on a weekly basis. If they have to order delivery for this week, they will be charged the average of last week’s product prices.

“In addition to all this, they have been affected by the ‘double whammy of falling sales and rising costs. To ensure they are competitive with industry peers and provide great value for money, members monitor daily prices to make sure that they stay on top of the changes.

Although supermarket prices are generally lower than those of other retailers, they have reached almost parity. According to the AA, the South East has the highest fuel costs and Northern Ireland the lowest.

The Government cancelled a planned increase in fuel duty last month. It claimed that this would have caused drivers an extra £15 each time they fill up.

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