Petrol Prices Slashed at Pump? Think Again!
Between mid-October and mid-December 2022, wholesale petrol prices plunged by 23p per litre. Sounds good, right? Wrong. Pump prices only dropped by 18p, despite hitting a peak of 166.54p at the end of October. The big culprit? Supermarkets, who cut prices by a mere 20p — not fast or deep enough for struggling drivers.
Diesel Drivers Hit Even Harder
Diesel motorists had it worse. Wholesale diesel prices dived 32p per litre over eight weeks, but pump prices only slid 20p after peaking at 190.41p. Supermarket diesel prices fell by the same stingy amount, leaving drivers out of pocket once more.
Retailers’ Margins Soar While Drivers Pay More
According to RAC data, pump price cuts stalled this week as wholesale prices creep back up, padding retailer profits. The fear? Forecourts will hike prices again with no real reason.
- Average petrol retailer margins jumped from 8.7p per litre in 2021 to 13.5p in 2022. Supermarkets’ margins rose from 5.8p to 10.8p.
- Diesel margins climbed too—up from 8.8p to 10.3p, supermarkets from 6p to 7.5p.
- Pre-pandemic margins were a modest 6.5p for petrol and 6.9p for diesel in 2019.
RAC Slams ‘Rocket and Feather’ Pricing
“Our data show that when wholesale prices rise, pump prices follow suit. However, when wholesale prices fall, forecourt prices fall much more slowly. This is the ‘feather’ part of what is commonly referred to as ‘rocket and feather’ pricing,” said RAC spokesman Simon Williams.
“Supermarkets, who dominate UK fuel retailing, were slow to pass savings on, dropping prices by less than 2p a week over three months—and when they did, cuts were too shallow, especially for diesel.”
“This is tough on drivers already squeezed by the cost-of-living crisis. Retailers must decide whether to keep inflated margins or let prices reflect fair levels. With no wholesale cost justification for rising pump prices, any hikes soon would look like blatant profiteering.”
“We urge the Government to ensure fuel retailers quickly pass wholesale price drops to drivers. Fair pricing helps combat inflation and ease pressure on households. The Competition and Markets Authority is already probing retail fuel pricing and has flagged ‘rocket and feather’ tactics. It’s time to act for motorists and businesses alike.”
