Retailers DOUBLE fuel pump profit margins under lockdown as savings not passed to drivers
Fuel savings up to this point represent just 60 percent of the discounts that should have been passed onto customers, according to experts. April’s AA Fuel Price Report has revealed costs should have been priced even lower as wholesale values dramatically declined.
- AA expert says ‘something’s not right’ with fuel prices
The report found how petrol and diesel costs continue to vary between different retailers with some as high as 10p per litre more expensive than others.
AA analysis revealed Asda was the cheapest retailer in the UK with petrol priced at just 103p per litre.
They were followed by Morrisons with petrol set at 104.31p per litre and Sainsbury’s at 105.03p.
Tesco was the most expensive of the big four supermarkets with prices averaging at 105.50p per litre this month.
Independent fuel station Murco was the most expensive in the UK with petrol prices at 113.88p per litre.
Sainsbury’s saw the highest price change over the last month with 12.30p per litre slashed from petrol costs.
Murco saw the lowest reduction with ust 8.23p removed from the price of petrol.
Shell and Texaco also dropped costs by under 10p per litre as both were among the lowest discounts offered in the nation.
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The AA said questions may need to be asked to identify why some retailers did not pass savings to motorists.
The wholesale price of petrol has stalled at around 16p per litre for three weeks.
AA analysis shows fuel prices should be around £1per litre even when factoring in 57.95p per litre fuel duty and a generous 9p profit margin.
Luke Bosdet, AA fuel spokesman claims there would be support for a review into pump prices after the crisis.
- Fuel prices 8p per litre cheaper in this region
He said: “Those representing the retailers say that pump prices need to stay high in the lockdown to compensate for lower sales volumes and avoid forecourt closures.
He added: “It is likely that once Covid-19 is defeated there will be calls for a review of UK pump prices during the current oil and commodity fuel price crash, as there were in the years after the 2008 to 2012 price spikes.
“One of the questions will be whether it is purely coincidental that Northern Ireland with an effective consumer watchdog has the lowest pump prices in the UK?”
Costs also dramatically varied on a regional scale with some areas of the UK charging dramatically more to top up a tank than others.
Data from the AA has revealed London is the most expensive place in the UK to fill up with petrol cost up to 7p per litre than Northern Ireland.
London prices stood at 112.6p per litre this week as Northern Ireland’s average pump prices stood at 105.5p.
AA analysis found the difference would equate to around a £3.50 saving when topping up an average tank.
Government fuel data has revealed petrol prices have fallen almost 20p per litre over the past two months.
Petrol costs stood at an average of 127.33 p per litre at the end of January before plummeting due to the crisis.
Costs have fallen by more than 10p per litre over the past three weeks after massive deductions.
Costs fell a massive 7p per litre in just one week in March after both Asda and Morrisons dropped costs by 12p per litre.
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