Four major supermarket chains across the UK are facing renewed criticism from motoring groups for 'refusing' to lower petrol prices further to match dropping wholesale costs.
The RAC has claimed that the gap between prices at the pump and wholesale prices is the widest it has been in almost a decade. The criticism comes just after supermarkets across the country began dropping their prices in a bid to attract drivers looking for lower prices amidst rising petrol costs.
Drivers are still paying around £1.76 per litre for fuel at forecourts, despite analysts suggesting that the actual price should be around £1.62. This is because the average price for delivered wholesale petrol last week was £1.24, with diesel at £1.38, reports Hull Live.
Despite the falling costs, the average petrol prices at Tesco, Asda, Sainsbury's and Morrisons was £174.4 per litre. Diesel was £1.86.
The fresh criticism comes just after the four major supermarket chains were under fire for not reacting quickly enough to drop their fuel prices. The RAC said that it was independent retailers that were "leading the way" with price cuts to their fuel.
Simon Williams, head of PR and external affairs at the RAC, said: "There appears to have been a big shift in the last few months in the behaviour of the four major supermarkets, which dominate UK fuel retailing, as they are now commonly being undercut by independent retailers that are passing on the wholesale cost savings they're benefiting from to drivers. This is unheard of, as the supermarkets are normally at least 3p a litre cheaper than the UK average."
Supermarkets have traditionally been cheaper than independent retailers because they buy fuel more often, meaning they can react more quickly when wholesale prices change. This was reflected in the speed at which they would pass on rising costs when wholesale prices increased, says Mr Williams, but now it appeared they were not so quick when it came to lowering them.
He said: "As the supermarkets account for so much of all the fuel sold across the country and they haven't lowered their prices as much as they should have, it means average UK prices have not come down in line with the significant drop in wholesale fuel."
The gap between retail and wholesale prices are bigger now than they were at the start of the pandemic, during lockdowns, and when the price of oil plummeted to around £10.50 per barrel. The current price of oil is around £79.71 per barrel.
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