Fuel retailers failed to fully reflect huge falls in wholesale costs, with drivers of diesel vehicles suffering the most, according to new analysis. The RAC said wholesale diesel costs plummeted by 32p per litre in the eight weeks to December 11, but average pump prices only fell by 20p per litre during that time.
For petrol, wholesale costs tumbled by 23p per litre over a similar period, but it took another month for average pump prices to drop by a total of just 18p per litre. The RAC said retailers make more money out of drivers from every litre of fuel they sell by “keeping pump prices artificially high”.
This is known as rocket and feather pricing, when pump prices quickly reflect rising wholesale costs but are slow to fall when costs drop. Price reductions at forecourts ground to a halt this week as wholesale costs started slowly rising again.
