RAC claims fuel prices are too high despite August drop, but PRA disagrees

August marked the first time in three months that fuel prices have fallen, according to the latest figures from RAC Fuel Watch.

However, the price drop was next to nothing as one litre of petrol fell by just 0.39p. That means the average cost of fuel per litre dropped from 135.03p in July to 134.64p by August 31. Diesel prices were also down, but again, they dropped by less than 1p. Diesel prices averaged out at 142.2p compared to the previous figure of 142.92p.

Supermarket prices also fell marginally, with unleaded in August dropping from 131.49p to 131.26p. The average diesel prices were also down 0.3p, from 139.11p to 138.81p.

If you’re willing to venture out a little further than normal for fuel, there are some deals to be had, such as MFG Morrisons in Leighton Buzzard, Bedfordshire, which offered petrol at 126.7p per litre.

BP stations in Cottingham Road in Corby, Northants, as well as Newton Road in Bovey Tracey, Devon, and New Islington Road in Liverpool, all charged 126.9 for a litre of petrol.

But despite the numbers, the RAC claims drivers are still spending too much money on refuelling, with RAC head of policy Simon Williams saying: “While it’s good news that two months of rising fuel prices have come to an end, it’s disappointing that high retailer margins are preventing drivers from benefitting from lower prices.

“The Competition and Markets Authority’s latest report confirms that retailer margins are far higher than they were historically, and that competition remains weak. Our analysis of pricing data confirms the latter, with just a handful of forecourts appearing to compete heavily on price, with the exception of those in Northern Ireland where drivers enjoy far cheaper fill-ups than in any other corner of the UK. This is no doubt a source of ongoing frustration for many of the nation’s motorists.

“We hope that greater transparency of fuel prices from the end of this year means that a spotlight is shone on both those forecourts that charge the fairest prices and indeed, those that sell petrol and diesel for far higher amounts.

“In the meantime, there are still some good deals to be had if drivers know where to look.  The free myRAC mobile app – which is available to our members and non-members alike – pinpoints good-value forecourts and can help ensure drivers pay as little as possible every time they need to fill up.”

However, in response to the RAC, the Petrol Retailers Association (PRA) says its members are charging fair prices.

A statement by Gordon Balmer, Executive Director of the Petrol Retailers Association (PRA), said: “Contrary to the RAC’s assertions, our members continue to price fuel fairly.

“Comparisons with historic fuel margins do not take into account the significant rise in operating costs faced by fuel retailers. These include increased borrowing costs, energy prices, wages, employers’ National Insurance contributions and record levels of forecourt theft.

“We will continue to cooperate fully with the Competition and Markets Authority (CMA). For consumers seeking the lowest local fuel prices, we recommend using PetrolPrices.com.”

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