The price of fuel should be 10p lower than it currently stands, despite an average drop of 7p across UK forecourts in September, the RAC has claimed.
However, the British Retail Consortium, which represents the major supermarkets – such as Asda and Tesco – has argued that reductions are being passed on “as they feed through the supply chain”, despite claims that retailers are making more than they would normally following the summer’s record high prices, which were driven by high demand and low supply.
Prices currently stand at an average of 162.89p per litre for petrol and 180.16p for diesel. This means filling up a 55-litre family car, such as a BMW 3 Series or Volkswagen Golf, costs £89.59 - almost £16 lower than July’s peak of £105.34 (191.53p per litre). The same tank of diesel stands at £99.09 – £10.41 less than July.
RAC spokesman Simon Williams said that these prices should be lower, at around 152p per litre for petrol, due to wholesale oil dropping from $130 a barrel in mid-June (£113.78 in current exchange rates) to $87.96 (£76.99) in September.
“Drivers really should have seen a far bigger drop as the wholesale price of delivered petrol [per litre] was around 120p for the whole month,” said Williams. “This means forecourts across the country should have been displaying prices around 152p given the long-term margin on unleaded is 7p a litre.
“The average price of petrol at the big four supermarkets is only 1.5p lower than the UK average – less than half what it usually is, which points heavily to them not playing fair with drivers.”
In response, Andrew Opie, director of food and sustainability at the British Retail Consortium, said: “Retailers understand the cost pressures facing motorists and will do everything they can to continue to offer the best value for money across their forecourts, passing on cost reductions as they feed through the supply chain.”
Despite this, the drop during September, which fell by 6.69p on average for petrol, was the sixth biggest across a month since 2000.
Across the UK, forecourts in England's north-east recorded the biggest decrease (8.24p), followed by London (7.91p) and the West Midlands (7.03p). The lowest drop was recorded in the East Midlands (5.93p), which leaves the region with the highest overall prices, at 164.14p per litre. The lowest in the UK is currently offered in Northern Ireland, at 159.28p per litre.
Williams added that prices should be dipping further in the coming weeks and months. He said: “Despite the plunge in the value of the pound, the fact oil is trading under $90 a barrel should lead to better prices at the pumps if only more retailers would pass on the savings they’re currently getting every time they buy new stock.”
Join the debate
Add your comment
That was in January this year. The 25th according to a chart I'm looking at just now. At the same time, it was 1.35 $ to £. Today it's 1.12. That is, previously the pound was worth 20% more.
Easy calculation, 1.35 / 1.12 * £1.30 = £1.57. This is take the ratios of pound's value back in Jan to today (October) and multiply by your fuel cost and we get £1.57 per litre.
£1.57 per litre is pretty much what the prices are around me, give or take a bit. That's how much the collapse of the pound has done for your fuel cost.
One of the reasons why the pound is down by so much is Brexit. If you don't like fuel prices take it up with a Brexiter as they're partly responsible for crashing the pound. They made you take a pay cut because the value of your earnings is now lower.
And, as EV power replaces ICE powered cars, how will they get the lostTax from motorists ?
Remember too that fuel prices would be lower if Brexiters hadn't crashed the currency.
Internationally oil is priced in US Dollars and you simply don't get as many of them since Brexit, and it's always been lower because of the Brexit vote, only increasing when some thought there was going to be a soft Brexit. Then Boris did a hard Brexit and the exchange rate crashed again.
As the trade figures come through, showing how much we're losing out to the EU (excluding oil and gas - which is in demand due to Russia), the more the pound collapses.
A big reason why you're paying more at the pump is thanks to Brexiters.
Emmm still remoaning then. Don't think you should look at the Euro v Dollar then, it's also sank. Record all time low, for the first time ever it's below parity.
You've got to love it where people who have been gaslighted by the right wing media, who have been trying to distract them from what has been done to the value of the pound, try to deflect to the Euro.
Yes, the Euro has dropped, but the Pound started from a much higher level. If what you're saying is it's terrible for the Euro, it's far worse for the Pound.
p.s. check out Germany, petrol is practically the same as the UK and since the invasion has never been pricer. It's historically followed the UK price pattern to. Facts and graphs can be amazing things, perhaps you should try them.