E10 biofuel: Department for Transport explains why it’s ‘better'
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Luke Bosdet, the AA’s fuel price spokesman said E10’s “lower fuel efficiency” means petrol stations were selling more fuel”. However, the AA warned forecourts were still not directly passing over savings to customers.
The AA said the launch of E10 fuel did lead to a slight drop in wholesale petrol prices.
But retailers continue to charge their customers at higher rates despite them saving around 1.5p per litre less for petrol than under the new compound.
Mr Bosdet said: “We now know that the switch to E10 petrol (10 percent ethanol) on 1 September saw the wholesale price of petrol drop by more than 4p a litre overnight.
“However, much of that saving was lost as Hurricane Ida’s enduring impact on the southern USA’s oil and fuel production sent the price of oil from around $66 a barrel in the third week of August to above $73 in September.
“All the same, that oil price increase hasn’t wiped out all of the E10 petrol price saving.
“Retailers are now paying 1.5p a litre less for petrol, although you wouldn’t know it from what the majority continue to charge their customers.
“Worse still, E10’s lower fuel efficiency and car traffic now back to 95 percent of the pre-pandemic level means that petrol stations are selling more fuel.
“Sadly, once again, the AA has to report that drivers are paying through the nozzle for their petrol.”
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According to the AA, petrol prices are now at an eight-year high since the new fuel has launched.
On Sunday morning, motorists paid on average 135.51p per litre, the highest rate since September 2013.
The AA has also warned petrol retailers and supplier margins have grown to their largest amount since November.
Average diesel prices were also slightly up across the UK with rates now standing at 136.80p.
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