Petrol prices do not fall despite lower wholesale costs
Why aren’t record high gasoline prices turning around? Week of cheaper wholesale costs to drive retailers to cut prices at the pump
- Wholesale prices have fallen 5.6 pa-litres in the past week, says the AA
- This should have translated into cuts at the pump saving drivers £2-£3 to refuel
- Still, retailers have so far failed to pass discounts on to motorists facing record high fuel costs for the fourth month
- RAC called on government to investigate ‘missile and springs’ fuel prices
Retailers have failed to pass on cheaper fuel prices to the country’s stretched motorists, who are endured a fourth week of record high costs to refuel, according to motorist groups.
The AA said there should have been a ‘significant drop’ in pump prices in recent days after a 5.6 liter per liter drop in wholesale petrol and diesel over the past week, which could have resulted in savings of up to £3 each time drivers refuel. upwards.
The RAC accused major fuel retailers of “rocket-and-feather prices” and claimed they “resisted passing on savings to drivers, instead waiting in the hope that oil prices would rise again”.
It comes as the UK joins the US and other countries in marketing oil from strategic reserves to ease pressure on both energy and fuel prices.
Drivers should have seen fuel prices fall by now: Motorists today accused major retailers of failing to pass on wholesale savings of more than 5 cents a liter
The AA says drivers should have seen pump prices fall by now, but adds that gas station cuts “remain elusive so far” and “show at best a stagnation of recent increases”.
Drivers are currently experiencing a fourth week of skyrocketing gasoline costs after soaring oil prices caused 10 weeks of consecutive average pump increases.
Lead-free rose above the highest price previously recorded in April 2012, when it crossed 142.48 pence on Sunday, October 24 – and has since averaged a further 5 p-per-litre.
Diesel eclipsed the previous record set nine years ago in the same month, when it rose to 147.94 pence on Sunday, October 31.
It means that the average cost of petrol and diesel has increased by about 34 pence per liter over the past 12 months.
This has made it about £19 more expensive to fill a typical 55-litre family car compared to November 2020.
Drivers are currently experiencing a fourth week of record petrol prices after 10 weeks or constantly rising prices due to higher oil costs
Petrol and diesel prices are both higher than the previous records set in April 2012. The new records were set last month and have continued to rise since then.
Experts say prices should have fallen below the previous record in 2012 after a dip of more than 5 cents per liter for wholesale gasoline and diesel in the past week.
|November 1st||144.17p||147.9 p|
|the 4th of November||145.06p||148.61 p|
|Nov 6||145.38p||149.43 p|
|Nov 9||145.72 p||149.27p|
|November 11||146.14p||149.66 p|
|Nov 13||146.36p||150.5 p|
|Nov 16||146.88p||150.43 p|
|Nov 17||147.05p||150.58 p|
|Nov 18||147.27p||150.66 p|
|November 21st||147.72 p||150.96 p|
|Nov 22||147.45 p||150.79 p|
|November 23||147.64 p||150.8 p|
|Source: AA. Highest price ever for petrol and diesel in bold|
However, these cost savings have yet to be seen at the pumps.
According to the average price data collected by the AA, Sunday (November 21) showed the highest average pump price for unleaded, at 147.72 pence.
On Monday it fell to 147.45p, but by Tuesday it had risen again to 147.64p.
Diesel has seen a similar price swing in recent days after peaking at 151.10p on Saturday (November 20).
Luke Bodset of the AA said: ‘The current price increases for petrol come from wholesale costs of over 54 p-per-litre in the second week of November.
“They’ll be at 49p in a fortnight.
Consumers and businesses cannot afford to let retailers hold back potential price cuts of £2 to £3 per tank.
“Holding on to see if costs will recover and therefore justifying allegedly keeping prices high may not be an option for an essential part of weekly spending.”
And fuel prices should fall even further below the previous record set in 2012 after the government on Tuesday authorized British oil companies to release up to 1.5 million barrels from their strategic reserves to ease pressure on rising energy and pump prices. .
The prime minister’s official spokesman said it was part of a coordinated international action by major energy consumers, led by the United States, to release 50 million barrels.
Despite the release, oil has since surged above $80 a barrel in the past 24 hours in what the AA described as “a blow to drivers and consumers seeking at least some relief from inflation-threatening Christmas spending plans.”
RAC fuel spokesman Simon Williams welcomed the government’s decision to release oil reserves but called on MPs to investigate why retailers have not passed on the available savings.
“This should provide drivers with a very welcome break from rising prices at the pumps,” said Mr WIlliams.
While this action is clearly necessary because of what is happening with global oil demand, there are also issues at home with retailers’ margins that the government would do well to investigate.
“Last week the wholesale price of fuel dropped dramatically, but the largest retailers, who lead the market, resisted passing these savings on to drivers, instead waiting in hopes the oil price would rise again.
“This is a classic example of ‘rocket and feather’ pricing. This also smacks of retailers taking advantage of the general public acceptance of rising energy prices.”
Drivers are already planning to cut back on Christmas spending
The AA says the lack of meaningful relief from record high fuel prices is because many motorists face the prospect of cutting back on their Christmas spending to offset expensive car bills.
A poll of more than 15,000 drivers a week ago found that 43 percent of them are cutting back on car use, other consumer spending, or both – 59 percent for the youngest drivers and 53 percent for lower-income drivers.
Of the directors aged 18 to 34, 28 percent are cutting back on other consumer spending to compensate. Half of them are cutting back on Christmas spending and more than 80 percent are eating out less.
Of the 8,361 respondents of working age (excluding 65+), one in ten cut their weekly groceries, up to 17 percent among 25-34 year olds.
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