Big Four Supermarkets Rake In Fuel Profits Amid Price Chaos
Before the Ukraine war, the UK’s big four supermarkets were making slim fuel margins under 5p a litre — 3.7p on petrol and 5.7p on diesel. Now? Margins have doubled to around 10p, with 9.3p on petrol and 10.8p on diesel. Petrol margins even hit a staggering 20p a litre after prices soared to a record 191.5p on July 3, 2022.
Diesel Margins Soar to Eye-Watering Heights
This year, diesel margins have rocketed to an average of 15p a litre, fueled by wholesale price drops that supermarkets refused to fully pass on. From late March to June, wholesale diesel prices fell below forecourt costs, pushing supermarket margins up to 23p a litre in May.
Margins Have Exploded Since 2016
- Back in 2016: margins were just 2.3p per litre.
- By 2019: climbed steadily to nearly 6p.
- During the pandemic: hovered around 5.7p.
- 2022: spiked 54% to over 9p a litre.
- Now in 2023: averaging 11p a litre—double previous years.
RAC Sounds Alarm Over Price Gouging
Simon Williams, RAC fuel spokesman, said:
“Lower fuel prices helped push inflation down to 7.9% last month, but this could have been even lower if supermarkets passed on cheaper wholesale costs.
“The big four have clearly cashed in on the Ukraine-fuelled market swings. They hiked petrol margins by 5p last year and pushed diesel margins nearly 8p higher this year by delaying price cuts despite falling wholesale costs. That’s double the average margins seen from 2019-2022.
“Sure, running forecourts costs more, but these fat margins hit UK motorists hard, especially with the cost of living crisis biting. Basically, drivers are paying more than they should depending on their local station.
“We welcome moves like the Competition and Markets Authority’s report exposing £900 MILLION of overcharging last year and their call for a price monitoring watchdog and real-time pump prices via fuel finder apps. That’s long overdue.
“Energy Secretary Grant Shapps pushing retailers to provide immediate real-time prices is a step forward, but real change won’t come until a monitoring body can punish those dragging their heels on passing savings to drivers.”
Save Pounds at the Pump with RAC’s Fuel Finder
The RAC’s myRAC app helps drivers bag up to 6p per litre in savings. Updated daily, it’s the UK’s most reliable free fuel finder – available on both the App Store and Google Play.
Drivers can also check the latest fuel price averages and supermarket margins via RAC’s RAC Fuel Watch web page, which tracks fuel prices at supermarkets, motorway services, and breaks down retail margins going back to 2000.
