Warning issued to any driver filling their car with petrol or diesel
Brits have been warned to keep an eye on pump prices when filling up their car with petrol or diesel in coming days.
The RAC has said drivers need to be aware that retailers may "start to bump up their prices" soon
The breakdown and car insurance provider warned retailers such as Shell and Esso, as well as supermarkets, have failed to fully reflect the fall in wholesale prices.
Wholesale diesel costs have plunged 32p per litre - but the pump price has only fallen by 20p in the same period.
Petrol costs have plunged by 23p in the same period, at the forecourt, the prices have only been reduced by a mere 18p.
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The RAC says they want to ensure that motorists are being treated fairly with the current market (Getty Images/iStockphoto)What this means is that motorists are paying over the odds, the RAC says.
Therefore, retailers - including the UK's biggest supermarkets such as Tesco, Sainsbury's, Asda, and Morrisons - make more money out of drivers from every litre of fuel they sell, the RAC says, by "keeping pump prices artificially high".
New RAC Fuel Watch analysis shows that retailers have failed drivers by not fully reflecting the enormous recent fall in the wholesale price of fuel at the pumps, with drivers of diesel vehicles suffering the most.
The fear is that retailers waste no time in putting pump prices back up despite there being no justification for doing so.
Speaking about this, RAC fuel spokesman Simon Williams is urging the Government to focus on retailers ensuring that they "pass on savings to drivers" and to ensure that motorists are treated fairly with the current market.
The price you pay for fuel at the pumps is governed by wholesale fuel prices (PA)Mr Williams said: "This is a galling situation for drivers who are struggling more than ever given the impacts of the wider cost-of-living crisis. The question now is whether retailers start to bump up their prices.
"This will depend on whether they decide to continue enjoying larger margins or let them return to more normal levels. Looking at current wholesale costs there is absolutely no justification for pump prices to rise.
Brits have been urged to be careful when filling up diesel or petrol in their car (PA)"We urge the Government to focus on ensuring retailers quickly pass on savings to drivers every time there is significant downward movement in the wholesale price of fuel - not just to ensure drivers aren't treated unfairly, but also because there is a clear correlation between high fuel prices and higher levels of inflation."
The analysis backs up a report by competition watchdog the Competition and Markets Authority published last month, which said drivers were the victim of "rocket and feather" pricing in 2022.
Retailers make more money out of drivers from every litre of fuel they sell, the RAC says (PA)What makes up the cost of a litre of fuel?
According to the RAC, the price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices, which are affected by:
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- the global price of crude oil
- supply and demand for crude oil
- oil refinery production and capacity
- the pound to dollar exchange rate, as refined fuel is sold in US dollars per metric tonne
- distribution costs
- the margin fuel retailers decide to take
- fuel duty charged by the Government, currently 52.95p a litre
- VAT charged at the end of every forecourt fuel transaction, currently at 20%
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