Anyone who drives a diesel van or car is being ripped off, according to breakdown experts at the RAC.
The RAC says wholesale prices of petrol and diesel have fallen by 10p in the past four weeks alone, but it's led to a cut of just 3p per litre on forecourts. But retailers are failing to pass on savings to customers, especially on diesel, instead choosing to increase profit margins.
This comes despite a 5p Fuel Duty freeze being extended for another year in the Budget. According to RAC figures, retailers are making 19p on every litre of diesel they are selling - twice what they made in 2022 and nearly three times as much as the year before.
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There are currently 12 million diesel drivers in the UK who haven't had seen any benefit from the wholesale cost of diesel dropping as retailers choose to hang onto the money for themselves.
A barrel of oil now costs $73.69, its lowest since December 2021 when it hit $72.77, but petrol and diesel prices are far, far higher than they were then.
If one retailer breaks ranks and lowers prices, it could cause a domino effect and trigger waves of price cuts on diesel across forecourts, meaning it might be best to wait if you're planning a diesel fill up (if you're able to).
RAC fuel spokesman Simon Williams told YorkshireLive: "At a time when so many households are struggling with the rising cost of living, we’re pleased the Chancellor did the right thing for drivers and kept fuel duty low in Wednesday’s Budget.
"Unfortunately, though, the pricing tactics of major retailers mean that diesel drivers in particular – including those who work for millions of small businesses – are still getting a really miserable deal at the pumps, and effectively aren’t seeing any benefit from the 5p duty cut whatsoever – as retailers are taking nearly four times this amount in margin with every litre they sell. So, in a peculiar way, it feels like it’s retailers who are benefiting from the lower duty cut right now, and not motorists.
"Drivers and small businesses have every right to feel aggrieved. We’re in a ridiculous situation where it would take just one major retailer to do the right thing and cut diesel prices to more sensible levels for a ripple effect to take place across the country’s forecourts, benefiting hard-up households everywhere. Instead, no retailer wants to blink first, with the result being millions of drivers forking out far more when they fill up than they should.
"Two weeks ago, we pointed to how easy it was for retailers to slash diesel prices given how low the wholesale price had fallen. It’s a sad reality that prices have merely trickled down by only around a penny since then.
"We now hope at least one major retailer finally decides the time is right to cut the prices to more reasonable levels, which will surely mean others follow. If this doesn’t happen, the best drivers can do is shop around and try to find a forecourt that's charging less than the RAC Fuel Watch average."
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