Oil costs less than nothing but fuel is overpriced by 10p

nHs staff and other key workers are having to pay rip- off fuel prices despite the plunging value of oil, campaigners said yesterday.

Petrol stations are charging 10p a litre more than they should, adding £5 to the average tank of fuel, the AA claims.

The price of oil plunged into negative territory for the first time ever on Monday after the lockdown caused demand to collapse.

In theory, this should trigger a widespread fall to 98p a litre for unleaded and 106p for diesel.

However, campaigners fear retailers will continue to charge inflated rates to key workers who – unlike most people – still rely on their cars to get around.

The average price of unleaded is 109.95p a litre, while diesel costs 115.33p. Retailers insist they need to keep prices at these levels to stay in business, but the pressure group FairFuelUK accused them of ‘using coronavirus as a smokescreen to maintain profits’. The average price of petrol has dropped 11p a litre in the past month – just 60 per cent of the saving that should be passed on, the AA said.

Its figures show retailers doubled their profit margins in March, despite the tumbling cost of oil.

A spokesman said: ‘I suspect that when the lockdown comes to an end, coronavirus is beaten and driving starts to return to normal, questions will be asked about the fairness of pump prices during the great oil crash of 2020.’

The AA also highlighted how drivers in congested areas were being charged an average of £3.50 more per tank of petrol than those in rural districts. However, the

Petrol Retailers Association (PRA) warned that the huge fall in traffic during the pandemic could put smaller garages out of business.

Retailers are keen to avoid a repeat of events in Italy, where plummeting vehicle use forced many forecourts to shut for good.

simon Williams, of the RAC, said retailers were struggling, adding: ‘People are driving very few miles, so they’re selling vastly lower quantities of petrol and diesel. This means many will be at pains to not trim prices any further.

‘We also continue to be concerned about smaller forecourts that provide a vital service in areas where supermarkets don’t have a foothold. Many are already finding conditions tough. It would be bad news if these shut for good.’

A PRA spokesman said: ‘It is vital we keep as many petrol stations as possible open to supply front-line health staff, lorry drivers and other key workers, especially in rural areas often served by small, family forecourt businesses.

‘Independent petrol stations are keeping prices as low and competitive as possible to stay in business.’

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