‘No good reason’ why fuel retailers refuse to drop prices

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There is “no good reason” why fuel retailers are refusing to cut prices, a motoring organisation has claimed.

Forecourt prices should be reduced by 2p per litre (ppl) to reflect a drop in wholesale costs, according to the RAC.

Drivers have suffered a rise min fuel prices almost every day since the end of April despite wholesale costs coming down by around 2.5ppl since May 24.

Average UK forecourt prices currently stand at £1.29 per litre for unleaded and £1.33 for diesel.

This is the most expensive both fuels have been since September 2014.

The RAC says recent falls in wholesale costs have been caused by the US drilling for more oil than in recent years, increased output from Russia and ongoing speculation oil producing group Opec will end its restriction on production.

RAC spokesman Rod Dennis said: “Our data shows it’s high time retailers cut the price of petrol and diesel at the pumps.

“We see no good reason for them to wait before passing on savings they are benefiting from.

“Motorists really felt the impact of rising prices in May, when the cost of filling up a petrol family car jumped by around £3.30 in a single month.

“We are now well into June, and drivers are still waiting for some relief to rising prices.

“There remains a risk that the cost of a barrel of oil could go up again.

“In such an instance the retailers are unlikely to pass on any savings they have banked during this period, but instead will start passing on future increases at the pump.”

Gavin Opperman of CYBG

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