Diesel ‘rip-off’ as wholesale costs cheaper than petrol for over a month, RAC says

Diesel drivers are being “ripped-off” on the pumps to the tune of round 16p per litre, based on a motoring group.

The RAC, together with others, has lengthy argued that British motorists and companies are paying over the chances for the gasoline – the engine behind the UK financial system – fanning the flames of inflation and the value of dwelling disaster within the course of.

RAC Fuel Watch evaluation confirmed diesel was 6p a litre cheaper than petrol on the wholesale market on the finish of final month.

The common pump worth, nevertheless, stood at 159.43p whereas petrol was unchanged at 146.5p.

While the report famous a 4p-per-litre drop for diesel at forecourts throughout April it stated costs in Northern Ireland, the place there’s a gasoline worth transparency mechanism in place, had been extra reasonable at 147.47p.

It believed drivers must be paying round 143p “at the very most” for a litre of diesel.

UK drivers confronted file gasoline payments final yr when Russia’s struggle in Ukraine drove up the price of oil.

Fuel turned a significant driver of inflation, which hit a 41-year excessive final autumn.

Costs have solely slowly eased as oil costs have come down from their June 2022 peak and supermarkets, which used to paved the way on gasoline worth cuts, signalled final yr that the times of low-cost gasoline had been over as they focus their firepower on meals worth as a result of squeeze on family budgets.

However, gasoline promotions are as soon as extra being utilized by shops as lures for buyers.

The RAC stated grocery store diesel was 2.75p cheaper than the nationwide common worth whereas the determine stood at 3.5p for unleaded.

Motoring teams and marketing campaign teams have lengthy argued for better transparency over the worth of petrol however a Competition and Markets Authority report final yr primarily gave retailers a clear invoice of well being.

RAC gasoline spokesman Simon Williams stated: “We feel there should be an obligation on retailers to reflect wholesale price movements on their forecourts.

“Sadly, the one place this appears to occur is in Northern Ireland the place a litre of diesel is, extremely, being offered for 12p lower than the UK-wide common.

“Our data shows that the average retailer margin on a litre of diesel is a shocking 22p a litre compared to petrol which is around 8p.

“The long-term averages for each fuels is 7p which suggests retailers are making 3 times what they’ve previously for diesel. This is difficult for them to justify and equally arduous for diesel drivers to swallow.

“Action at a government level is badly needed to stop drivers being ripped off any longer.”

Gordon Balmer, govt director of the Petrol Retailers Association which represents impartial operators, responded: “The independent sector accounts for approximately 36% market share by fuel sale while the supermarkets are market leaders at 45%.

“Due to their market share, supermarkets are worth leaders and in lots of instances our members will use them as markers for pump costs when working in the identical space.

“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 foremost retailers, advised Sky News: “The price of diesel has been falling consistently throughout 2023 as retailers aim to provide their customers with the best value for money.”