UK drivers missing out on huge reductions in fuel cost as petrol stations refuse to slash prices

Fuel prices at the pump have failed to reduce at the same speed as wholesale prices
Fuel prices at the pump have failed to reduce at the same speed as wholesale prices

The price of petrol should have dropped by a further 11p per litre and diesel by an extra 14p.

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UK petrol stations are failing to slash fuel prices despite a drop in the wholesale price, new research has found.

The RAC has accused retailers of failing to drop prices quickly enough, with Britons already grappling with the cost of living crisis forced to continue to pay high prices.

The average price of petrol in the UK fell by 8p a litre in December according to the motoring group, while the cost of diesel dropped by 9p.

The average price of petrol should have dropped by a further 11p and diesel by an extra 14p
The average price of petrol should have dropped by a further 11p and diesel by an extra 14p

According to the RAC the price of petrol should have dropped by a further 11p per litre and diesel by an extra 14p.

Spokesman Simon Williams said: "For weeks we’ve been calling on the big four supermarkets to cut their prices more substantially to give drivers a fairer deal when they fill up.

"So, even though they have reduced their prices collectively by more than 10p a litre in December, they are still nowhere near where they should be given the scale of the drop in wholesale prices."

The Competition and Markets Authority (CMA) opened an investigation into fuel prices in the summer of 2022 at the request of the Government.

In December Business Secretary Grant Shapps also demanded fuel retailers write to the CMA to "explain changes in pricing behaviour".

"This government will not hesitate to act to ensure competition is healthy and consumers get a fair deal on their fuel," he added.

Williams said: "We hope the business secretary’s intervention just before Christmas puts more pressure on larger retailers to do the right thing."

An investigation has been launched into fuel prices
An investigation has been launched into fuel prices

The RAC's Fuel Watch data found that it costs on average it currently costs £83.08 to fill a 55-litre tank with petrol, and it costs £95.68 to do the same with diesel.

Prices for fuel surged last year following sanctions on the purchase of Russian energy following Vladimir Putin's invasion of Ukraine.

While Britain did not rely on energy from Moscow for household energy, it remained a key supplier for fuel.