Diesel and petrol price cuts in November failed to reflect the extent of wholesale cost falls, according to the RAC.

The average price of petrol fell by 7.5p a litre in November to 146.95p, but drivers are still paying 10p more than they should be according to analysis conducted by the breakdown provider.

Diesel came down by almost 7p to 154.40p but the RAC says that it is also overpriced by 5p a litre due to savings from lower wholesale costs not being passed on by retailers to fleets at the pumps.

The RAC’s analysis shows that average retailer margin on petrol is now 17p a litre and 13p for diesel.

The long-term averages are 7p for petrol and 8p for diesel.

This news comes as drivers are still supposed to be benefitting from a 5p-a-litre duty cut implemented in March 2022.

Instead, the RAC says that it is major retailers which are gaining from this.

The RAC believes petrol should be sold for an average of 137p and diesel for 150p, based on retailers taking a fairer margin. This means drivers are currently paying around £5 more than they should be to fill up an average 55-litre family car (£80.62 v £75.35). For diesel, the figure is around £2.50 (£84.92 v £82.50).

In stark contrast, membership-only retailer Costco is currently selling unleaded for an average of 133.7p and diesel for 144p – 14p and 11p less than the UK average respectively.

In Northern Ireland, unleaded is being sold for an average of 141.4p and diesel for 149.5p – 5.5p and 5p less than the UK average.

Independently run forecourt Grindley Brook in Whitchurch, Shropshire, is only charging 131.9p for petrol – matching Costco’s cheapest price, and 15p cheaper than the UK average – and 143.9p for diesel, 10.5p lower than the UK average.

By comparison the average price of unleaded at the big four supermarkets is 143.37p and 151.48p for diesel.

RAC Fuel Watch data shows that the wholesale price of petrol dropped by 9p a litre in November and diesel by 7p on the back of oil averaging $84 across the month and the pound gaining ground on the dollar closing November at $1.26, up from $1.21 at the start.

A litre of unleaded currently costs retailers just 106p and diesel 117p.

RAC fuel spokesman Simon Williams said: “While the price of fuel fell in November, the truth is there is no reason whatsoever for drivers to be jubilant as the data clearly shows they are continuing to get a rough deal at the pumps, unless they live in Northern Ireland.

“Wholesale fuel costs have been falling for months, so they should be paying around 137p for petrol, instead of a whopping 147p. Diesel is also overpriced at 154.40p when it should be on sale for under 150p.”

Williams continued: “This is extremely worrying as the biggest retailers don’t seem to have heeded the warnings levelled at them by Energy Secretary Claire Coutinho at the end of October saying she wouldn’t hesitate to call out those that rip off the public. 

“While the Energy Secretary’s action may have encouraged retailers to begin reducing their prices, it’s undoubtedly a case of far too little, far too late.

“The wholesale market data the RAC analyses shows the true picture and unfortunately, for the Government and drivers, it shows the 5p-a-litre duty cut is not getting to drivers at all, and prices aren’t falling nearly fast enough yet again.”

The RAC has contacted Coutinho’s department to explain what’s going on with a view to prompting greater and more effective intervention.

“If a price monitoring body had already been set up by now – as recommended by the Competition and Markets Authority and accepted by the Government – then this might have been prevented and people might finally be getting a fairer deal at the pumps,” added Williams.

“We reiterate our call to the biggest retailers to significantly cut their prices to mirror what’s happening with greatly reduced wholesale costs.”

It was announced last month that the Competition and Markets Authority (CMA) will become the body responsible for closely monitoring road fuel prices and reporting any sign of malpractice to the Government.

Fuel retailers, including supermarkets, will be forced to reveal how much they are charging customers on their forecourts versus their profits.

Those that fail to comply could face a fixed fine from the watchdog of up to 1% of their worldwide turnover, or an ongoing fine of up to 5% of daily turnover.

Gordon Balmer, executive director of the Petrol Retailers Association (PRA), said: "We have been working closely with both the Competition and Markets Authority and the Department of Energy Security and Net Zero as they develop their fuel price transparency scheme.

"Amidst a cost-of-living crisis, the PRA is doing all it can to ensure that motorists have access to the best information possible.

“It is disappointing that as we work constructively with the relevant Government departments to find a solution, we are forced to constantly correct the record.

"I have extended yet another invitation to the RAC to offer a comprehensive understanding of the cost pressures our members face.

"Retailers operate on razor thin margins to stay competitive, despite having to content with the recent increases in fixed costs." 

Regional pump prices

Unleaded	01/11/2023	30/11/2023	Change	End of month variance to UK average
UK average	154.41	146.95	-7.46
East	155.11	147.75	-7.36	0.80
East Midlands	154.45	147.47	-6.98	0.52
London	155.02	149.24	-5.78	2.29
North East	153.77	146.58	-7.19	-0.37
North West	154.17	146.29	-7.88	-0.66
Northern Ireland	149.96	141.53	-8.43	-5.42
Scotland	153.36	145.59	-7.77	-1.36
South East	155.52	148.51	-7.01	1.56
South West	154.71	146.85	-7.86	-0.10
Wales	153.98	145.52	-8.46	-1.43
West Midlands	155.06	147.20	-7.86	0.25
Yorkshire and the Humber	153.78	146.44	-7.34	-0.51

 

 

 

Diesel	01/11/2023	30/11/2023	Change	End of month variance to UK average
UK average	161.25	154.40	-6.85
East	161.48	154.66	-6.82	0.26
East Midlands	160.98	154.11	-6.87	-0.29
London	162.47	156.38	-6.09	1.98
North East	159.93	154.13	-5.80	-0.27
North West	160.10	153.80	-6.30	-0.60
Northern Ireland	157.63	149.79	-7.84	-4.61
Scotland	161.31	154.58	-6.73	0.18
South East	162.85	155.94	-6.91	1.54
South West	162.10	154.73	-7.37	0.33
Wales	161.40	153.41	-7.99	-0.99
West Midlands	161.77	154.75	-7.02	0.35
Yorkshire and the Humber	161.02	154.53	-6.49	0.13