Concerns arise over high fuel retailer margins

By Staff
3 Min Read

The RAC has raised concerns over excessive fuel prices in a letter to Energy Secretary Claire Coutinho, citing diesel margins at a staggering 18p per litre, double the long term average.

Despite government efforts to increase transparency and competition, including a voluntary Pump Watch scheme, fuel margins remain unjustifiably high, according to the RAC.

RAC fuel spokesman Simon Williams said: “We feel the current margins being charged by larger retailers in particular are extremely unfair on drivers struggling to get by in the cost of living crisis.

“The big four supermarket retailers, which dominate fuel sales, are once again flatly refusing to cut their prices in the wake of much lower wholesale costs.

“If they were being fair on drivers, they should already have shaved at least 5p off their current petrol average of 147p and 8p off diesel which averages 154p at a supermarket forecourt.

“Our data shows the supermarkets are taking about 11p a litre on petrol and 16p on diesel compared to 3p and 8p in 2019.

“We realise that supermarkets, along with all businesses, have been affected by inflation, but these increases seem blatantly unfair. And, of course, without them cutting their prices, there is little incentive for other retailers to follow suit.”

A DESNZ spokesperson told Energy Live News: “The Energy Secretary has been clear that retailers who fail to pass on savings to drivers at the pumps will be held to account.

“We are already giving the CMA tough new powers to force retailers to come clean on their prices and call out any rip-off charges.

“Drivers deserve to know they are getting a fair price for fuel and our Pump Watch scheme will do just that, helping them to find the best deal.”

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