Retailers have been given a “good prod” by the Competition and Markets Authority (CMA) which has seen a sharp fall in pump prices.
The CMA issued a report slamming retailers of not passing on the wholesale costs to motorists, which has now seen the average petrol prices plummet.
The AA said that the decrease too 31 days and prices fell by 3.5p per litre from 8 October and 14 days after the regulator issued their report on 8 November prices dropped further by 3.75p per litre.
The CMA said that in September and in October the difference with prices at the forecourts and the wholesale cost was “significantly above the long-term average.”
AA pump price spokesman Luke Bosdet said, “It’s amazing what happens when the competition watchdog gives the fuel trade a good prod, pump prices fall at twice the speed and £2 comes off the cost of a tank of petrol within a fortnight.”
Bosdet added, “We will have to see how MPs giving the CMA a stronger role in scrutinising the fuel trade turns out in practice.
“However, evidence this month is extremely positive.
“Drivers just need the voluntary fuel price reporting scheme to become a statutory one, particularly along motorways and major routes.”
RAC fuel spokesman Simon Williams said, “The recent fall in fuel prices is definitely no cause for celebration as drivers are still losing out massively at the pumps because retailers refuse to cut their prices to reflect far lower wholesale costs.
“Average retailer margin on petrol is currently around 17p a litre – 10p more than the long-term margin.”