Motorists topping up their vehicles with petrol or diesel over the coming days could be in for a shock - with the RAC advising that fuel prices may soon rise again.
According to data collated by the automotive services company, retailers selling on fuel have failed to fully reflect the fall of wholesale prices.
The organisation report that wholesale petrol costs were reduced by 23p per litre, but the average pump price took nearly a month to fall by just 18p.
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And it's worse for diesel drivers, with wholesale costs plunged by 32p a litre across eight weeks, but the reflection in retail only dropped on average by 20p. With that in mind, it is suggested that motorists are still paying overly-inflated prices for their fuel.
The RAC also say that supermarkets were 'not cutting their prices far enough or soon enough'.
RAC fuel spokesman, Simon Williams, said: “Our data shows that when wholesale prices increase, pump prices tend to rise very soon afterwards. Yet, when wholesale prices fall it takes far longer for forecourt prices to come down.
"This is the ‘feather’ element of what’s commonly known as ‘rocket and feather’ pricing. Wholesale fuel prices plummeted from the middle of October last year, yet supermarkets – which dominate fuel retailing in the UK and as a result buy new supplies very frequently – took weeks to begin cutting prices in a serious way.
"What’s more, not only were they slow to pass on wholesale price reductions, cutting prices by less than 2p a week over the course of three months, they also didn’t go far enough, especially when it came to reducing the price of diesel on their forecourts."
Speaking on potential price rises in the near future, Simon added: “This is a galling situation for drivers who are struggling more than ever given the impacts of the wider cost-of-living crisis. The question now is whether retailers start to bump up their prices. This will depend on whether they decide to continue enjoying larger margins or let them return to more normal levels.
"Certainly, looking at current wholesale costs there is absolutely no justification pump prices to rise. If pump prices do rise in the coming days, this will be further evidence of the biggest retailers taking advantage of motorists.
“We urge the Government to focus on ensuring retailers quickly pass on savings to drivers every time there is significant downward movement in the wholesale price of fuel – not just to ensure drivers aren’t treated unfairly, but also because there is a clear correlation between high fuel prices and higher levels of inflation.
"As the Competition and Markets Authority is currently looking into retail fuel pricing and has even acknowledged the presence of ‘rocket and feather’ pricing, this is the prime time to take action for the benefit of consumers and businesses.”
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