Supermarkets failing to cut petrol prices as wholesale costs plunge

Major supermarkets including Tesco, Asda, Sainsbury’s and Morrisons are facing a backlash for failing to cut petrol prices despite plunging wholesale costs.

According to the RAC, supermarket garages are not cutting fuel prices by as much as they should to match the “significant” price drop.

The motoring group said the gap between pump and wholesale prices is the largest in almost a decade as the supermarket forecourts fail to pass on lower prices to struggling consumers.

READ MORE: Petrol stations face urgent review of 5p fuel duty cut amid profiteering claims

Petrol prices at the pumps were around £1.76 per litre on Tuesday (9 August), despite analysis from the RAC which suggested it should be at around £1.62.

Based on prices at the four big supermarkets, the average cost of petrol and diesel was £1.74 and £1.86 per litre at the start of the week.

“There appears to have been a big shift in the last few months in the behaviour of the four major supermarkets which dominate UK fuel retailing,” said RAC spokesperson, Simon Williams.

“They are now commonly being undercut by independent retailers that are passing on the wholesale cost savings they’re benefitting from drivers at the pumps.

“This is unheard of as the supermarkets are normally at least 3p a litre cheaper than the UK average.”

Williams added: “As the supermarkets account for so much of all the fuel sold across the country and they haven’t lowered their prices as much as they should have, it means average UK prices have not come down in line with the significant drop in wholesale fuel.”

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