A motoring organization suggests that the CMA’s review of the petrol market should consider why petrol prices are not falling, accusing retailers of acting slowly to protect their margins.
Retailers of gasoline have been accused of forcing “rocket and feather” pricing after the average price of unleaded reached a new, unexpected record high over the weekend.
However, Experian Catalyst data revealed on Monday that petrol reached 191.1p per liter on Sunday, contrary to the expectations of motoring organizations.
It meant that the average cost of filling a family vehicle had surpassed £105, putting additional strain on businesses and family budgets amid the cost of living crisis.
On Saturday, diesel prices reached a new high of 199.1p, before falling back to 198.9p the following day.
The RAC was surprised by the unleaded figure and asserted that there is a clear and well-established strategy in place whereby retailers are quick to pass on rising costs but slow to react when they fall.
Simon Williams, the spokesman for the company’s fuel, said: “We find it difficult to understand how retailers can continue to raise unleaded prices when the wholesale price of gasoline has decreased substantially.
“Sadly, this is a classic case of rocket and feather pricing in action, and the Competition and Markets Authority (CMA) will undoubtedly examine it closely.
Despite having a clear opportunity to reduce their forecourt prices, retailers appear to be making matters worse for themselves.
He added: “The only explanation for retailers’ unwillingness to reduce prices is that they are protecting profits if wholesale costs suddenly increase.
“The longer they hold out, the greater their gain, and the longer the misery endures for drivers struggling with high prices.”
Similarly, the AA expressed frustration regarding the issue.
President Edmund King stated: “During the summer when airports are struggling and dramatic diesel prices are impacting the industry, haulage, and fuel inflation, record gasoline prices could stifle staycations.
The government must act immediately to increase price transparency and reduce duty levels.
It is unknown when the business secretary-ordered CMA market review will report back its findings.
The industry has been contacted for comment, as gasoline retailers have consistently denied previous claims of profiteering.
