RAC claims re­tail­ers fail­ing to pass on drop in price of oil to con­sumers at the petrol pumps

The Herald - - NEWS - NEIL LANCEFIELD

FUEL re­tail­ers should be cut­ting the price of petrol by at least 3p per litre fol­low­ing a sud­den drop in the cost of oil and a strength­en­ing of the pound, it has been claimed.

The RAC said the whole­sale price of petrol has dropped be­low £1 per litre, mean­ing su­per­mar­ket pump prices should be around £1.25 tak­ing into ac­count de­liv­ery, profit and VAT.

But mo­torists are still be­ing charged around £1.28 at the four big su­per­mar­kets, while the av­er­age price across all fore­courts stands at £1.32.

Oil has fallen from a fouryear high of $86 per bar­rel on Oc­to­ber 4 to $81 on Thurs­day.

Mean­while ster­ling has im­proved against the dollar from 1.29 US dollars to the pound on Oc­to­ber 2 to 1.32 US dollars this week.

RAC fuel spokesper­son Si­mon Wil­liams said: “Ma­jor fuel re­tail­ers should be re­act­ing to the sharp drop in the whole­sale price of petrol by knock­ing at least 3p a litre off at the pumps.

“Mo­torists have suf­fered with ris­ing petrol prices for most of this year.

“We are sure re­tail­ers will do the right thing and pass the sav­ings on to driv­ers, but the ques­tion is how long will it take for them to do this. If prices don’t fall soon then we fear this will be fur­ther ev­i­dence of the so-called ‘rocket and feather’ ef­fect where prices go up far more quickly than they fall.”

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