Fuel retailers deny profiteering as pump prices shoot up

Fuel retailers have dismissed claims that drivers are being overcharged following a surge in pump costs.

Data launched by the RAC on Wednesday confirmed an 8p per litre surge in the price of diesel final month to a brand new common of 163.1p.

Petrol costs rose by practically 5p per litre to 157p.

The motoring group blamed the continued hikes on manufacturing cuts agreed by the Opec+ group of oil producing nations, which have helped ship Brent crude oil prices up since July.

A barrel stood at round $72 then.

It has nudged in the direction of $100 in current weeks and presently stands at $90, putting better upwards stress on inflation extra extensively as the extra payments solely add to the value of residing disaster.

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‘Constrained’ oil provide within the coming months

Because oil is priced in {dollars}, a weakening of the pound towards the US foreign money has additionally contributed to the extra payments on the gasoline pump.

The RAC, nevertheless, claimed that retailers have been overcharging petrol prospects.

Its gasoline spokesman, Simon Williams, stated: “Our evaluation of RAC Fuel Watch wholesale and retail information exhibits that petrol is presently overpriced by round 7p a litre, though the worth of diesel is more likely to go up additional nonetheless within the coming weeks.

“It’s worrying that retailer margin throughout the UK is larger for petrol than it must be contemplating the large 4 supermarkets have been advised off by the Competition and Markets Authority for overcharging drivers by £900m in 2022.

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July: ‘Motorists should not getting one of the best deal potential’:

“While many have voluntarily started to publish their prices ahead of being mandated to in law, we still have a situation where wholesale price changes aren’t being fairly reflected on the forecourt.”

Its conclusion was dismissed by the Petrol Retailers Association (PRA) which represents unbiased forecourts and has virtually two-thirds of the market.

Its government director Gordon Balmer stated: “Contrary to claims made by the RAC, our members are not unjustifiably pricing petrol higher than needed.

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“Fuel margins have been below stress because of elevated operational prices that our members have needed to bear.

“To address rising labour expenses, energy costs, and the highest inflation rates in recent years and reduced fuel sales, margins have inevitably increased. Attempting to whip up public anger by suggesting otherwise is deeply irresponsible.”

He added: “The PRA remains committed to advocate for our members and promote transparency within the sector.

“We are prepared to interact with any mediator to facilitate a constructive and knowledgeable dialogue on these essential points.”