Diesel price 'shocking' given wholesale drop, says RAC

2 months ago 7

Man astatine  petrol pumpImage source, Getty Images

By Michael Race

Business reporter, BBC News

Diesel is being sold for astir 17p per litre much connected mean than petrol, contempt wholesale costs falling to akin levels, a motoring radical said.

Average diesel prices are £1.64 per litre compared with £1.47 per litre for petrol, portion some are priced astatine astir £1.15 wholesale, the RAC said.

It said the quality was "scandalous" and that cuts successful the wholesale terms had not been passed connected to customers.

Retailers said they "understood the outgo pressures" drivers faced.

Supermarkets and backstage retailers bargain substance connected the wholesale marketplace to merchantability to consumers.

The RAC, which tracks and campaigns connected substance prices, said diesel wholesale prices had fallen and were present the aforesaid arsenic petrol connected average.

But Simon Williams, substance spokesperson for the motoring group, said determination was "still much than 17p quality astatine the pump" which helium described arsenic "absolutely shocking".

Mr Williams said fixed the magnitude wholesale prices had dropped, forecourts should person already reduced pump costs for diesel to astir £1.52, and a further chopped to £1.47 successful the coming weeks should provender through.

When prices alteration successful the wholesale market, they tin instrumentality clip to provender done to changes astatine the pumps, owed to however often smaller sellers restock.

But Mr Williams said larger supermarkets, which predominate sales, had been fixed "plenty of time" to walk connected little prices to customers.

Supermarkets bargain substance much often than autarkic sellers.

"They [supermarkets] stay wholly resolute successful their refusal to chopped their prices substantially which is thing abbreviated of scandalous, peculiarly successful a cost-of-living crisis," helium said.

"For retailers to beryllium taking a borderline of astir 20p a litre connected mean passim March, compared to the semipermanent mean of 7p, is devastating for each operator and concern that relies connected diesel."

However, the British Retail Consortium, which represents supermarkets, said: "Retailers recognize the outgo pressures facing motorists and volition bash everything they tin to connection the champion value-for-money crossed petrol forecourts."

The commercialized assemblage did not remark connected the disparity successful prices directly, but said due to the fact that prices astatine the pump thin to lag down wholesale prices, the caller falls successful diesel wholesale prices were inactive filtering done to consumers.

Fuel costs surged successful the aftermath of Russia's penetration of Ukraine arsenic planetary lipid prices soared to much than $130 a barrel.

However, crude lipid costs person present returned to levels seen earlier the war.

Nathan Piper, an lipid and state analyst, told the BBC diesel prices person been typically higher owed to the UK needing to import the fuel, whereas it is self-sufficient erstwhile it comes to petrol production.

The UK imported astir 20% of its diesel from Russia earlier the warfare successful Ukraine.

Mr Piper said cutting ties with the state meant prices accrued arsenic request roseate globally.

But determination has been disapproval from motoring groups similar the RAC that portion petrol retailers were speedy to enactment up prices, they've been slower to bring them down arsenic costs person fallen.

A contention probe is ongoing into whether retailers made greater profits done alleged "rocket and feather" pricing, which is erstwhile substance prices emergence arsenic wholesale costs rise, but past autumn much dilatory than costs travel down.

The Competition and Markets Authority (CMA) watchdog said successful its latest update it had seen some grounds of that successful 2022, successful peculiar for diesel pricing.

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