Supermarkets and other fuel retailers have reportedly slashed the price of diesel by 7.44p a litre.
According to RAC analysis, over the two weeks since May 15, the average price of a litre of diesel at a supermarket went from 151.02p per litre to 143.58p per litre. It comes after the the wholesale price of diesel has been below that of petrol since the end of March.
On May 15, the average price for a litre of petrol and diesel showed an average gap of 9p. However, by Monday (May 29), this had shrunk to 2.5p.
Read more: Join the FREE Manchester Evening News WhatsApp community
RAC highlighted that the move from retailers could have been sparked by the Competition and Markets Authority (CMA) which expressed its concern over dwindling competition in the retail fuel market. RAC fuel spokesman Simon Williams said: “Since the Competition and Markets Authority’s made its announcement about supermarkets increasing their margins compared to three years ago and said they will be formally interviewing bosses, it appears the rate at which the price of diesel has fallen has sped up.
“Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. As a result average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p. Even today, with 27p having come off the average price of supermarket diesel since the start of the year, diesel drivers are continuing to get a poor deal.
"For two straight months it has cost retailers less to buy diesel on the wholesale market than it has petrol, yet they continue to charge more for diesel at the pumps. While wholesale price changes take some time to filter through to smaller forecourts which only buy new stock every few weeks, we can’t see any reason why the supermarkets still haven’t cut their prices to fairer levels as they buy much frequently.
“We look forward to the results of the CMA’s review within the next four weeks and hope it heralds an end to poor value at the pumps. We also hope it means the biggest retailers start charging fair prices at all of their sites across the country, and not just at those where they’re competing directly with other forecourts locally."
Mr Williams highlighted the issue of 'postcode lotteries' where different parts of the country sell the same fuel at a wide variety of prices. He offered a money-saving tip for motorists who want to spend less on filling up their vehicles.
He added: "It can’t be right that the same brand can sell fuel for so much more in one part of the country than another – this sort of postcode lottery is wholly unfair to drivers and completely unjustifiable. In the meantime, drivers who qualify for membership might like to look at Costco for better value petrol and diesel.
"Our analysis shows the membership-only retailer is charging an average of just 134.5p for a litre of petrol and 136p for a litre of diesel at the moment.”
Read next:
Teen involved in fatal attack on school friend claims he only 'wanted to have a fight'
Crowds watch on as 'dangerous drivers' cruise around Trafford Centre car park
Police slam FORTY selfish drivers who put fellow M6 motorists 'in danger' after crashes
Thug randomly stabs stranger in horror attack outside takeaway
