In December, the average retail profit on a litre of fuel rose to 13p, more than double the 2021 figure. The RAC is making an urgent plea to the government to intervene in this situation.
During December, the UK saw a decrease in the average price of petrol by 6 pence per litre (ppl) to 146.69p, while the average price of diesel decreased by 5ppl to 149.18p.
The cost of unleaded has returned to pre-Russia’s invasion of Ukraine levels, as a barrel of oil currently costs less than $80 (£63) as opposed to the $130 (£102) it reached earlier this year. However, the RAC argues that with reduced margins from the top four supermarkets, pump prices should be even lower.
Northern Ireland is experiencing lower costs for both diesel and petrol compared to the UK average, and the big four supermarkets as well. Meanwhile, an independent forecourt in Shropshire charges significantly lower prices than the national average for fuel.
RAC fuel spokesman Simon Williams pointed out the significant price difference between regions in the UK, urging the government and large retailers to make adjustments.
The RAC is calling for the largest retailers to reduce their prices in line with those in Northern Ireland. Additionally, they are urging the government to ensure price transparency and fairness in the fuel market, especially for consumers.
According to RAC data, the delivered wholesale price of petrol is 104p, suggesting that unleaded should be sold at an average of 137p—a significant difference from the current 140.6p figure.
It’s clear that there is a need for improved transparency and fairness in fuel pricing, and the RAC is working to hold retailers and the government accountable for ensuring that consumers are not overcharged.