RAC warns motorists over petrol and diesel prices as there is ‘no good reason’

Fuel retailers are exploiting the general election focus by keeping their margins “persistently high”, a motoring group has claimed. The RAC said petrol and diesel prices in the UK are “much higher than they should be” as wholesale costs have fallen since the end of April.

The average price of a liter of petrol in UK forecourts is 146.3p, which is “5p more expensive than it should be”, with Northern Ireland charging 141.1p for the same product , according to the company. Meanwhile, Britain has had the most expensive diesel in Europe for seven weeks, with a liter costing an average of 151.5p. In Northern Ireland the price is almost 10p lower at 141.9p.

RAC figures show retailers’ margins – the difference between what they paid for fuel and the price at the pump – are 14p per liter for petrol and 16p per liter for diesel. The long-term average for both fuels is 8p per litre.

RAC Head of Policy Simon Williams said: “Margins remain consistently high again and drivers are paying the price. Our data makes it clear that pump prices have not fallen in line with wholesale price reductions, so drivers in the UK – with the exception of Northern Ireland, where fairer prices are charged – are shedding a few extra kilos every time they they fill up.

“We believe there is no good reason for UK retailers not to reduce their pump prices much further. We can only think they hope no one will notice due to the distraction of the general election. We hope the Competition and Markets Authority (CMA) is aware of what is happening and will use this to bring retailers into line as soon as they can.”

Pump prices are generally lower in Northern Ireland than in the rest of the UK, partly due to competition from yards in the Republic of Ireland. Independent fuel retailers in the UK have said they are facing cost increases from various factors such as business rates, energy bills and wages.