Big retailers failing to cut fuel prices in line with wholesale cost

MAJOR retailers are failing to reduce petrol prices in line with falling wholesale costs, the RAC has warned.

The roadside recovery firm said wholesale cost of unleaded – the price when it arrives at forecourts – is now back down to its early May price of 131.75p per litre, which saw average pump prices of around 167p per litre.

But drivers are currently paying an average of 183p per litre at pumps across the UK despite the drop in wholesale costs, the RAC said.

It comes after fuel prices hit their highest-ever levels earlier this summer as the UK’s cost-of-living crisis began to bite.

As of the end of July, the wholesale cost of petrol has fallen by 20p since early June, according to RAC’s calculations.

Yet UK retailers have only dropped their pump prices by an average of 9p, the firm said.

This means drivers filling up at the end of July average of 183p per litre could be paying almost £9 a tank more than they should be.

Equally, the firm said drivers should now be paying about 182p per litre for diesel – nearly £6 a tank lower than the end of July average of 192p per litre.

The “big four” supermarkets – Tesco, Asda, Morrisons and Sainsbury’s, along with several other suppliers – have been facing criticism for failing to reduce their prices in line with falling wholesale costs.

The RAC said that while several reduced their prices last week, the cuts are not enough to be in line with the wholesale cost.

RAC fuel spokesman Simon Williams said: “July has been an unnecessarily tough month for drivers due to the big four supermarkets’ unwillingness to cut their prices to a more a reasonable level, reflecting the consistent and significant reductions in the wholesale cost of petrol and diesel.

The PA news agency has contacted Tesco, Asda, Sainsbury’s and Morrisons for comment.

RAC warns drivers after fuel prices hit record levels.