“Fuel sellers will lose credibility if they don’t lower prices this week”: The RAC has warned that if British fuel retailers do not drop petrol and diesel prices this week, they will lose credibility.
According to the RAC, merchants have demonstrated the worst ‘rocket and feather’ behaviour by refusing to lower their pump pricing.
According to data from the British automotive services provider, the price of oil decreased by $10 (£7.5) a barrel last Friday to $73.18 (£54.9), implying that drivers are overpaying by 12p per litre of fuel and 10p per litre of diesel.
“On Friday news of the Omicron Covid variant caused $10 (£7.5) to be shaved off the oil price leading to a further drop in the wholesale price of fuel.” said Simon Williams, RAC fuel spokesman Simon WIlliams.
“We estimate that retailers are now making around 19p a litre which is shocking when you consider their average margin pre-Covid was 6p.
“The profit on diesel is around 15p a litre with a similar long-term average margin to petrol. Based on the fact the biggest retailers buy new supply every week we believe unleaded is 12p too expensive and diesel about 10p too dear.”
“Fuel sellers will lose credibility if they don’t lower prices this week”