You are here: Home - Household Bills - News -

Pump prices fall by a fraction

0
Written by:
11/07/2022
Petrol and diesel prices fell by a fraction over the course of a week, but wholesale prices have continued to plummet.

Average petrol prices ended last week at 190.95p per litre, while diesel fell slightly from 198.68ppl to 198.42ppl on Sunday.

According to RAC fuel spokesman, Simon Williams, the fractional falls of under a penny a litre in the average price of both petrol and diesel over the course of a week when wholesale prices have plummeted are an “irremovable stain on major retailers’ reputations”.

He added it’s “frightening” that this is going on “under the nose of the Competition and Markets Authority” which last week published its report into the fuel market.

The CMA confirmed it had launched an investigation following pump price concerns after looking at retailer spread (the gap between wholesale prices and retail prices), and refining spreads (the gap between the price of crude oil entering refineries and the wholesale price of petrol and diesel leaving them).

Williams said: “Whatever the situation is with the issue it has identified with refining margins, there is still a wholesale price and a retail price – and the gap in between is retailer margin. When this grows significantly, it should always be a cause for concern as it’s a sign drivers are being taken for a ride.

“Just this weekend there have been queues to buy more fairly priced fuel at wholesaler Costco in Manchester and a major supermarket running a fuel discount promotion – both signs that petrol and diesel are substantially overpriced.

“Independent retailers’ claims that the CMA’s report ‘exonerated’ them is interesting to say the least when recent analysis of wholesale and average retail price data tells a very different story.”

Williams added that the weekly wholesale price of petrol has fallen by 12p a litre over the last six weeks. Last week it averaged just 140.5p “so it’s very wrong that drivers are still paying 190.65p across the UK”.

He said: “When factoring in a generous 10p a litre retailer margin and 20% VAT the cost of a litre should be around 181p. While the CMA’s review concluded that retailer margins are only a relatively small component of the pump price at around 10p a litre, it’s worrying to see margins are currently averaging closer to 15p.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week