Pump prices continue to rise but wholesale costs fall ‘significantly’

Fuel retailers have been accused of profiteering by the RAC as pump prices continued to rise over the weekend, while wholesale costs have fallen “significantly”.

A litre of unleaded broke records again when it averaged 191.05p on Sunday (June 26) and diesel also reached another high point on Saturday (June 25) with an average price of 199.09p.

RAC fuel spokesman Simon Williams said: “We are struggling to see how retailers can justify continuing to put up their unleaded prices as the wholesale cost of petrol has reduced significantly.

“This is sadly a classic example of ‘rocket and feather’ pricing in action, and one which the Competition and Markets Authority will no doubt be looking at very closely.

“It seems as if retailers are making matters worse for themselves by not lowering their forecourt prices despite having a clear opportunity to do so.”

The Government announced earlier this month that it had asked the Competition and Markets Authority (CMA) to investigate fuel retailers to see why a 5p duty cut, announced by the Chancellor in the Spring Statement, is not being seen at the pumps.

The CMA will also look at price variations between filling stations.

“Even the price of wholesale diesel, which had been on a rising trajectory due to the move away from Russian imports, has cooled,” continued Williams.

“This could yet prevent its average price from hitting the £2 a litre landmark. But, as always, that will depend on how fairly retailers reflect the reduction in its wholesale price on their totems.

“The only explanation of retailers’ resistance to reducing prices is that they’re protecting profits in case of wholesale costs suddenly going back up.

“Ultimately, the longer they hold out, the more they benefit and the longer the misery continues for drivers struggling with the high prices.”

Fleet News has teamed up with Allstar to bring you the fuel prices locator. 

Average pence per litre and per gallon petrol and diesel fuel prices in the UK regions includes England, Scotland, Wales and Northern Ireland. To access the fuel prices, click here.