Motoring body the RAC wants to see petrol retailers cut the price of fuel by 5p a litre to match lower wholesale costs.
The price of oil spiked after Russia invaded Ukraine last year, which subsequently pushed up the price at the pumps for drivers. But the BBC reports the wholesale cost of oil is now lower, with a barrel being $20 less than it was.
The RAC also claimed supermarkets were making the most profits from petrol. It claimed the average profit is 16p for every litre of unleaded fuel sold in October, and 12p for every litre of diesel.
The motoring body also claimed the profit on unleaded was double what supermarkets had been making since 2012. According to the BBC, Asda said its prices were around 4p a litre cheaper than the UK average. Tesco, Sainsburys and Morrison’s had not issued comments to the Beeb.
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Supermarkets have recently come under scrutiny for their petrol prices following an investigation by the Competition and Markets Authority (CMA). Fuel duty was cut by Chancellor Jeremy Hunt last March, but there were fears it would not be immediately reflected at the pumps.
The CMA investigation found the cut had been passed on. It did however say increased profit margins cancelled out the benefit.
The watchdog however claims weak competition means supermarket margins on fueld had creapt up, resulting in higher costs for motorists. It ended up reccomending retailers set up a comparison website to show live fuel prices.
In the aftermath of Russia’s invasion of Ukraine last year, crude oil prices hit more than $120 a barrel. Following that peak, oil prices fell back to a little above $70 a barrel in March this year.
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Prices have climbed slightly to $90 in recent months. However, wholesaler prices still remain lower than last summer, leading for the RAC calling for this to be reflected at the pump.
RAC fuel spokesman Simon Williams said: “Drivers are still losing out massively when wholesale prices come down. But in Northern Ireland, where the supermarkets don’t dominate fuel retailing, drivers are getting a fairer deal with a litre of unleaded costing 150p and diesel 157p – 5p less than the UK average.”
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