Fleets still left shortchanged at the pumps despite price drop

Analysis of fuel prices by the RAC shows that some fleets are still paying too much for their fuel, despite the average price of petrol falling by 2p a litre in October.

The average price of a litre of unleaded fell 2.6p from 157.12p to 154.53p last month, but the RAC’s monitoring of the wholesale market reveals that it remains overpriced and should be on sale for around 145p.

Diesel, which came down by a penny to 161.4p in October, is also more expensive than the RAC analysis suggests and should be selling for 156p a litre.

RAC fuel spokesman Simon Williams said: “While four months of rising petrol prices came to an end in October, it’s definitely no cause for celebration that the drop was only 2p a litre as our data shows it should have been far greater.

“Instead, drivers will be outraged to learn they are still not being charged a fair price at the pumps by the big four supermarkets which dominate UK fuel retailing.

“This is dramatically demonstrated by the fact that one small independent retailer in rural Shropshire is selling petrol for 11p cheaper than the supermarkets.”

Whitchurch in Shropshire, independently run Grindley Brook Garage is charging just 140.9p for petrol – nearly 14p less than the UK average, which is equivalent to a saving of £7.50 a tank.

What’s more, the motoring organisation fuel pricing app shows there are three other independent retailers within five miles selling petrol for well under 150p – 5p less than the UK average.

Diesel at Grindley Brook, run by DA Roberts, is 151.9p – nearly 10p less than the UK average, a saving of more than £5 on a complete fill-up.

Meanwhile, in the nearest town of Nantwich just 13 miles away where there are two supermarket retailers, the cheapest petrol within five miles of the town centre is 152.9p – 7p more than around Whitchurch – and the lowest priced diesel is 159.9p, which is 4p less than the average near Whitchurch.

In Northern Ireland the average price of petrol on October 31 was 150.02p – 4.5p less than the UK average, while diesel is 157.48p, 4p cheaper.

The RAC’s analysis also reveals that membership-only retailer Costco is selling unleaded for an average of 141.7p at its 20 sites – 13p below the UK average with its lowest price being 138.9p in Birmingham.

Its average price for diesel is 151.7p – 10p less than the UK average, but its Derby site is selling for 148.9p.

In stark contrast the average prices charged at the big four supermarkets nationally is 151.72p for petrol – down 2.3p in October – but almost 11p more expensive than independently run Grindley Brook in Shropshire.

Supermarket diesel ended October at 159.24p, up nearly a penny in the month, but more than 7p dearer than Grindley Brook.

Williams continued: “Our data clearly shows the supermarkets, like all fuel retailers, are benefitting from lower wholesale costs but once again aren’t passing these savings on to their forecourt customers.

“Despite the Competition and Markets Authority’s investigation concluding in the summer that the supermarkets had overcharged drivers by an incredible £900 million last year, history sadly seems to be repeating itself.”

Williams says that every day the supermarkets put off reducing their prices to fairer levels that reflect the lower wholesale market, is another day of extra profits for them, and another day of drivers having to fork out more money than they should have to for their fuel.

“This is all made worse by the fact that fuel duty is currently being discounted by 5p a litre to ease the burden on drivers in the cost-of-living crisis – a duty cut that drivers simply aren’t benefitting from,” he added.

“We highlighted these issues to the CMA, the Treasury and the Department for Energy Security and Net Zero last week, so were pleased to see that Energy Secretary Claire Coutinho has written to retailers making it clear they must pass on savings to drivers otherwise she will name and shame them.”

Regional pump prices