Fuel prices ‘stubbornly static’ in July – analysis

Fuel prices were “stubbornly static” in July despite wholesale prices justifying cuts, according to new analysis.

The RAC said the average prices of a litre of petrol and diesel at UK forecourts last month remained static at 145p and 150p respectively.

The motoring services company said per litre wholesale prices mean drivers should be paying just 140p for petrol and 142p for diesel.

RAC figures show retailers’ margins – the differences between what they paid for fuel and the pump price – are 13p per litre for petrol and 15p per litre for diesel.

The long-term average for both fuels is 8p per litre.

Disappointing

RAC head of policy Simon Williams said: “It’s disappointing to see fuel prices remain far higher than they should be, especially after the Competition and Markets Authority (CMA) announced at the end of July that drivers were overcharged by an astonishing £1.6 billion last year.

“With our analysis clearly showing margins are still significantly above the long-term average, it seems like nothing has changed and drivers continue to lose out despite all the ongoing scrutiny from the CMA and the Government.

“Coupled with this, the wholesale fuel market is trending lower due to the price of oil falling by 6 US dollars to around 80 US dollars at the end of July.

“This in itself ought to lead to lower prices at the pumps but, as the CMA made clear in its report, competition in fuel retailing is extremely weak.

“As a result, we sadly can’t see pump prices reducing much further without retailers’ acting on what the CMA is saying and finally introducing some much-needed fairer pricing strategies.

“It must be incredibly galling for drivers to see the UK average price of petrol stubbornly static at 145p when the wholesale cost merits lower pump prices.”