Fuel prices “stuck in a rut” since December, warns AA

Petrol prices should be cut as much as 3p a litre, despite a 10% ride in wholesale costs since Christmas.

According to new analysis by the AA, average petrol prices have been “stuck in a rut” at between 145.5p to 146.0p a litre since December.

This is despite wholesale prices decreasing from 54.3p a litre in the second week of November to 46.3p over the festive period, which was still 51p lower even with a surge in oil prices to a seven-year high.

READ MORE: Government under pressure to act as HGV driver shortage hits fuel deliveries

The AA said the “stubborn refusal” by fuel retailers not to pass on more than 2p a litre in savings has seen profit margins soar.

Despite supermarket fuel is being a cheaper option, according to Which? the AA revealed the average price of a litre of petrol should be around 142p-143p, up to 3p lower than current levels.

Although, there are fewer actual sites, supermarket forecourts sold the highest volumes of fuel per site in the UK.

In 2020 Big 4 grocer Sainsbury’s sold the highest volume of fuel per station, equating to 11,781 kiloliters per annum.

AA fuel price spokesman, Luke Bosdet, said: “Is it just a coincidence that pump prices are considerably lower where there is an active official consumer watchdog monitoring them every week?

“The price transparency that the Consumer Council of Northern Ireland gives to its motorists not only informs them when their community’s fuel costs are dearer than elsewhere, but indicates the possible savings locally.”

However, The success of price transparency is “no surprise” to Bosdet.

He said: “Where it was introduced in countries like Austria, the impact on pump prices was equally dramatic.

“In the rest of the UK, despite being urged by the AA, the government and the competition authorities failed to give drivers that help – with the consequences seen in the past 18 months.”

Average fuel prices reached the highest level on record in the autumn, exceeding 147p a litre for petrol and 151p a litre for diesel.

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