Retailers ‘take drivers for a ride’ by hiking petrol prices in November while wholesale prices fall, says RAC

Drivers endured yet more pump price rises last month with retailers even though the wholesale cost of fuel was already lower and suddenly dropped even further, according to new analysis by RAC Fuel Watch.

Despite wholesale petrol prices tumbling 10p in November to their lowest levels since September, retailers actually continued to put prices up with the average cost of a litre of unleaded ending the month at 147.28p.

It was a similar picture for diesel, with prices up to 150.64p by 30 November in spite of wholesale costs having fallen by 7p from the middle of the month.

Prices for both fuels peaked at record highs on 21 and 20 November respectively – petrol 147.72p per litre and diesel 151.1p.

The RAC says there is “absolutely no justification for the high prices being charged on forecourts” and is pleading with retailers to cut pump prices immediately to fairer levels – by around 12p a litre for petrol and 7p for diesel – or clearly explain the reasons for charging the prices they are.

“This would reduce the average price of unleaded to 135p and diesel to 144p. At the moment, drivers of petrol cars are losing out to the tune of an incredible £5.5m a day based on current prices.” The RAC said.

The discovery of the Omnicron Covid variant is the reason for the sudden drop in wholesale prices towards the end of the month, with a barrel of oil falling to $70.90 at the end of November, down from $84.74 at the start.

The RAC says the the “unjustified high cost of fuel is hurting drivers at the worst possible time with Christmas just around the corner and is adding to the unprecedented pressure on household incomes, especially among the less well-off.”

According to data published by PetrolPrices.com, Morrisons Saltney has the cheapest unleaded petrol locally last week at 142.9p

Applegreen, Wrexham Road, Pontyblyddyn was the second cheapest at 143.8p, At Asda Queensferry, the price of a litre of unleaded was 145.7 on Wednesday.

The most expensive petrol locally can be found at Texaco Buckley was (reported on 01/12) a litre of unleaded stood at 147.9p.

RAC fuel spokesman Simon Williams said:

“We can’t see any justification for the prices that are being charged at the pumps and are concerned that drivers on lower incomes who depend on their vehicles are being priced off the road altogether.”

“The wholesale petrol price, which is what retailers pay to buy new supply, dropped by 10p from mid-November, so we can’t see how any increase – let alone a 3p one – was warranted.”

“Much earlier in the pandemic we saw retailers’ margin on fuel understandably increase as the oil price plummeted on the back of people being told to stay at home.”

“Despite the news of a new Covid variant, we are in a completely different world now with car use near to pre-pandemic levels so retailers shouldn’t be taking huge profits on every litre of fuel they sell.”

“We therefore urge them to do the right thing and cut their prices to much fairer levels as matter of urgency.”