UK petrol and diesel retailers accused of not passing low oil prices on to drivers | Gasoline prices

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Pressure is mounting on gas station owners to lower fuel prices after accusations of not charging drivers with wholesale costs.

The average UK petrol price fell by 8p a liter in December to 151p and diesel by 9p to 174p, according to the RAC.

But the auto group accused retailers, including the largest supermarkets, of not cutting prices quickly or adequately compared to the drop in wholesale costs.

UK fuel price under scrutiny. The competition watchdog began scrutinizing the sector amid record prices last summer.

RAC Fuel Watch data showed that filling a full 55-litre tank of fuel cost an average of £83.08 at the end of December, £4.63 cheaper than at the start of the month. For diesel it was £95.68, £5.19 less.

However, the RAC argues that petrol should be sold at 140p a liter instead of 151p, and diesel at 160p a liter, not 174p.

Oil prices have fallen in recent months amid concerns about the impact of a potential global recession and the economic impacts of the Covid virus in China.

The UK government asked the Competition and Markets Authority to examine fuel prices last summer after accusations that fuel tariff cuts were not passed on to consumers.

The CMA first raised concerns about the margins made by oil refiners, then later said there was evidence of “rocket and feather” behavior — when prices rise quickly but fall slowly — in the industry. The investigation is ongoing.

In late December, Business Secretary Grant Shapps wrote to retailers urging them to “explain changes in pricing behaviour” to the FMA, expressing concerns about the pressure on consumer spending. “This government will not hesitate to act to ensure that competition is healthy and that consumers get a fair deal on their fuel,” he said.

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RAC fuel spokesman Simon Williams said: “For weeks we’ve been calling on the big four supermarkets to lower their prices further to give drivers a fairer deal when they fill up, so even though they collectively cut their prices by more than 10p a liter in December , they’re still close to where they should be getting the volume of the wholesale price drop.

“Hopefully the intervention of the business secretary just before Christmas will put more pressure on major retailers to do the right thing.”

RAC data showed that UK petrol and diesel prices were highest in London, the South East of England and the East Midlands in December.

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