Campaign group FairFuelUK has said petrol and diesel should be 25p per litre cheaper than it is on forecourts currently as it slammed "the foul stench of profiteering". It said the price of a barrel of Brent Oil is now below £80, which it said should signal a considerable reduction in filling up at the pumps.
It said the price was down 14% in Sterling and 17% in US Dollars since June 1. The group has compared the situation to February, when oil was at a similar price, yet petrol was 31.4p per litre lower and diesel 38.1p per litre lower.
It accused the Government of raking in an extra £10million in VAT per day as a result, while families pay £15 to £20 more per tank compared to February. It also compared prices to those in Europe, with petrol in Germany 35p per litre cheaper, France 31p and Italy 25p.
For diesel, FairFuelUK said Germany was 32p cheaper, France 36p and Italy 37p. FairFuelUK and MPs are now calling on the Government and the next Prime Minister to cut Fuel Duty by at least 20p to 25p per litre, similar to Europe's recent double-digit cuts and introduce a 'PumpWatch' watchdog system as a matter of urgency.
It said that these measures would help reduce inflation and the cost of living as a result of lower fuel prices.
Robert Halfon MP, vice chair of FairFuelUK APPG, said: "This is literally highway robbery from the big oil companies. We need PumpWatch now, to ensure that motorists have a proper watchdog to investigate what appears to be racketeering."
Craig Mackinlay MP said: “We are no closer to solving the conundrum of why pump prices remain at record highs despite wholesale oil prices returning to previous levels seen earlier in the year and should also be seeing the supposed benefit of a 5p per litre cut in fuel duty. While I can appreciate that general supply chain costs will have increased, the Competition and Markets Authority (CMA) has further work to do to understand and explain the situation.
"We should be seeing reductions of at least 25p per litre across all pump fuels; the public have reached their own conclusions that excessive profiteering is at play. HM Treasury have ample room to initiate further duty cuts to alleviate cost of living pressures. I’d recommend they do it.”
Penny Mordaunt MP, Minister of State for Trade Policy, said: “Families rely on their car and businesses, especially micro businesses, need fiscal support to keep its overheads manageable. All of us need to play our part to keep things moving including a focus on the cost of fuel.”
Richard Tice, a broadcaster and leader of the Reform Party, said: “Fuel barons in the supply chain are racketeering. The Government should call time and threaten them with 'fixed price fixed profit' unless industry sort themselves out within a few weeks.”
Howard Cox, founder of the FairFuelUK Campaign, said: "The foul stench of profiteering gets even more overpowering. Despite the cost of oil falling 14% since June 1, pump prices remain stubbornly 6p to 7p higher.
"The Tory Government, stuck in its self-absorbing overlong leadership contest, is allowing the fuel supply chain to ruthlessly exploit UK's drivers completely unchecked. And the Treasury's coffers are bulging at the seams with a shed load of extra VAT too. An independent PumpWatch is way overdue and it's morally repugnant it's not been up and running by now."
FairFuelUK said its price comparisons were based on RAC Foundation Data, Global Petrol Prices dot com and its own research.
