Petrol prices are still as high as ever despite the wholesale costs falling, meaning major retailers are failing to reduce them in line with the costs, the RAC has warned.
The roadside recovery company noted that the wholesale cost of unleaded petrol is back down to its May 2022 price of 131.75 pence per litre. At this time, the average pump prices were 167 pence, yet prices are still sitting at the 183 pence per litre on average right now.
The wholesale cost, which is the price the petrol is when it arrives at forecourts, has fallen, but drivers are still paying above the average, the RAC said. It comes after fuel prices have hit their highest-ever levels earlier on in the year, as the cost of living crisis in the UK continues to increase.
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The wholesale cost of petrol has fallen by 20 pence since early June, according to the RAC. Retailers in the UK, however, are refusing to drop their prices and only reduced the price by nine pence during the month of July.
This means drivers filling up during July - when the average was 183 pence per litre - could be paying nine pounds more than they should be. The RAC also said that diesel users should only be paying 182 pence per litre at the minute - nearly £6 a tank lower than the end of July average of 192 pence per litre.
The supermarkets in question, Tesco, Asda, Sainsbury's and Morrisons, alongside several other suppliers, have been facing massive scrutiny due to this, as they fail to reduce their prices. The RAC said that while several reduced their prices last week, the cuts are not enough to be in line with the wholesale cost.
RAC fuel spokesman Simon Williams has said: "July has been an unnecessarily tough month for drivers due to the big four supermarkets’ unwillingness to cut their prices to a more a reasonable level, reflecting the consistent and significant reductions in the wholesale cost of petrol and diesel. As it was, we saw independent retailers leading the charge with fairer pump prices appearing all around the country which eventually forced the supermarkets to finally implement a more substantial cut late last Friday afternoon.
"What ought to have happened is that the biggest retailers cut their prices more significantly on a daily basis, given the wholesale price of petrol has fallen steadily over the last eight weeks.”
Mr Williams advises drivers to not assume supermarkets are the cheapest places for fuel, and advised motorists to go independent.
He added that road users should, 'shop around as it’s highly likely you’ll find an independent retailer which is doing the right thing and fairly reflecting their lower wholesale costs by charging a lower price'.
He added: “This is really encouraging because the independents buy new stock less frequently than the supermarkets as they don’t sell as much, and consequently aren’t as well positioned as their rivals to be able to snap up fuel at lower prices when there are sudden market drops.”
A spokesperson for Sainsbury’s said: “We are committed to offering motorists great value and over the weekend we lowered the price of petrol and diesel across our forecourts. We price locally and competitively.”
Check where the cheapest price for fuel in your area is here.
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