Fuel retailers are failing to reflect the enormous falls in wholesale costs and the RAC have accused them of making more money out of drivers from every litre of fuel by “keeping pump prices artificially high.”
The RAC said that this is known as rocket and feather pricing when the price of fuel quickly represents wholesale costs, but are then slow to drop when costs fall.
In the eight weeks to 11 December the RAC said that wholesale diesel costs fell by 32p per litre however pump prices only fell by 20p per litre at the time.
RAC fuel spokesman Simon Williams said, “This is a galling situation for drivers who are struggling more than ever given the impacts of the wider cost-of-living crisis.
“The question now is whether retailers start to bump up their prices.
“This will depend on whether they decide to continue enjoying larger margins or let them return to more normal levels.
“Looking at current wholesale costs there is absolutely no justification for pump prices to rise.
“We urge the Government to focus on ensuring retailers quickly pass on savings to drivers every time there is significant downward movement in the wholesale price of fuel – not just to ensure drivers aren’t treated unfairly, but also because there is a clear correlation between high fuel prices and higher levels of inflation.”