On 23 March the Chancellor Rishi Sunak announced during his spring statement to reduce fuel duty by 5p a litre, but fuel retailers are being accused of refusing to pass on the duty cut to motorists.
The announcement was worth a saving of 6p per litre due to the impact on VAT, but the average price of a litre of petrol has only dropped by 3.7p per litre.
On Sunday the average price per litre was 163.6p compared to 167.3p on 22 March, figures from data firm Experian Catalist show.
Over the same period the average price of diesel dropped by 2.4p per litre from 179.7p to 177.3p.
RAC spokesman Rod Dennis said, “Drivers will be disappointed that prices haven’t come down further since last week’s fuel duty cut.
“As duty is charged on the wholesale cost of fuel, it’s the case that some retailers will be waiting for new deliveries in order to buy fuel in at the cheaper rate – meaning drivers will have to wait to see the benefit at the pumps.
“What happens to the oil price, and in turn wholesale costs, in the coming days will be crucial. If prices rise, there’s a risk the fuel duty cut will be cancelled out as retailers face higher costs.”
AA fuel price spokesman Luke Bosdet said, “Why are drivers not surprised that on average a third of the petrol saving has yet to be passed on at the pumps?
“The fuel trade always disputes the accusation that pump prices shoot up like a rocket and fall like a feather. Now we know the truth.”
Bosdet said the Treasury “must have expected more from UK forecourts”.