The distraction of the general election is allowing retailers to charge “far higher” prices for fuel than they should be, according to the RAC.
This is because a lack of political pressure, which has previously forced down pump prices, is allowing garages to keep margins high, the organisation claims.
Currently, the average price of a litre of petrol on UK forecourts is 146.3p and diesel is 151.5p.
This means that profit margins are now as high as 14p for petrol and 16p for diesel, whereas the long-term average for each has been 8p, says the RAC.
As a result, the cost of brimming a 55-litre tank of a typical family car, such as a VW Golf, costs on average £3 more for petrol (£80.50) and £5.50 more for diesel (£83.30).
The RAC says lower prices in Northern Ireland, at 141.1p for petrol and 141.9p for diesel, show how cheap fuel should be across the rest of the UK.
RAC head of policy Simon Williams said: “While there has been much focus on fuel since the Competition and Markets Authority concluded the biggest retailers had overcharged drivers by £900 million in 2022, margins are once again staying persistently high.
“Pump prices haven’t fallen in line with the reduction in wholesale prices, so drivers across the UK – with the exception of those in Northern Ireland, where fairer prices are charged – are once again losing several pounds every time they fill up.”
Williams added: "Having monitored prices for so long, we believe there’s no good reason for retailers not cutting their prices at the pumps far further. We can only think they’re hoping no one will notice due to the distraction of the general election."
In response, the Petrol Retailers Association (PRA) said the RAC’s data overlooks “several critical factors”.
PRA executive director Gordon Balmer said: “We must consider the significant increases in operating costs, reduced fuel volumes post-pandemic, and the substantial investments required to transition to a low-carbon transportation system.
“These factors mean that fuel retailers need to earn more from fuel sales to stay in business and invest in the future.”
What determines the price of fuel?
The price of petrol and diesel you buy at the pump is largely determined by the wholesale price of Brent crude oil.
However, fluctuations in the price of this can take weeks to filter through to the forecourts.
The price of crude oil has gone up nearly $12 per barrel since the start of July 2023 to around $96 in October and now fallen to around $78.
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Had to buy some diesel this morning for a borrowed van. I'd forgotten how smelly and dirty it is. Also, there was diesel all over the handle and trigger when I lifted it, so the cashier had to spray my hands and give me some paper towels to clean it all off. This is a very poor experience compared to charging an EV. I don't miss buying fuel one bit.
My local Tesco has raised the diesel price only by 2p, so there is now 10p difference between petrol and diesel. How come in Europe it's the same price.
Buy one less Coffee/Tea?, seriously, five years ago you paid ,well where I live, about £1.55 a litre, a weeks fuel cost me about £55.00 ,ok, some of you will use double that in the same time maybe more for some, but, if you made your Coffee in the morning before you left and stuck it in an insulated cup it would be far cheaper and y might find you have more cash to cover the short term increase.