The motoring group asserts that motorists and businesses are overpaying for diesel and that the government must take action to guarantee market transparency throughout the United Kingdom.
A motorist organisation alleges diesel drivers being “ripped off” at the pumps by 16 cents per litre.
Along with others, the RAC has long argued that British motorists and businesses are overpaying for petroleum, the driving force behind the UK economy, thereby stoking inflation and the cost of living crisis.
RAC Fuel Watch found that diesel was 6p per litre cheaper than petrol on the wholesale market last month.
However, the average outlet price was 159.43p while petrol remained unchanged at 146.5p.
While the report noted a 4p per liter decrease in diesel prices at forecourts in April, prices in Northern Ireland. Where a fuel price transparency mechanism is in force, were more accurate at 147.47p per liter.
It was believed that motorists should pay no more than 143 pence per liter of petroleum.
Fuel retailers have been accused for a long time of being quick to raise prices when wholesale costs increase and sluggish to lower prices when wholesale costs decline.
Last year, British motorists paid record fuel prices due to Russia’s conflict in Ukraine.
Inflation, which reached a 41-year high last autumn, was primarily driven by the price of fuel.
As oil prices have declined since their June 2022 peak, costs have decreased only gradually, and supermarkets, which used to lead the way in fuel price reductions, signaled last year that the days of inexpensive fuel were over as they focus their efforts on food value due to the squeeze on household budgets.
However, retailers are once again using fuel promotions to attract cash-strapped consumers.
The RAC reported that supermarket diesel was 2.75p cheaper than the national average, while unleaded was 3.50p cheaper.
Motoring organizations and advocacy groups have long advocated for greater petrol price transparency. But a report issued by the Competition and Markets Authority last year essentially gave retailers a clear bill of health.
Simon Williams, spokesman for RAC fuel, stated, “We believe retailers should be required to reflect wholesale price changes on their forecourts.”
Unfortunately, this only appears in Northern Ireland, where diesel costs 12 pence less than the UK average.
“According to our data, the average retailer margin on a liter of diesel is a startling 22 pence. Whereas the margin on a liter of petrol is approximately 8 pence.
“The long-term averages for both fuels are 7p. Which means retailers earn three times as much for diesel as they did in the past.” This is difficult to justify and difficult for diesel drivers to accept.
Government action is urgently required to prevent drivers from being taken off in the future.
Gordon Balmer, executive director of the Petrol Retailers Association, which represents independent operators, replied, “The independent sector accounts for approximately 36% of the market share in terms of fuel sales, whereas supermarkets are the market leaders with 45%.”
Supermarkets are market leaders, thus our members often utilise them as gasoline price references.
“This dynamic is now shifting, with many commentators noting that independent forecourts are increasingly offering more competitive prices.”
A spokesperson for the British Retail Consortium, which represents the main retailers, stated, “The price of diesel has been falling steadily throughout 2023 as retailers strive to offer the best value to their customers.”
