Wholesale Petrol Prices Plunge but Pumps Stay Sky-High
Between mid-October and mid-December 2022, wholesale petrol prices dived by 23p per litre. Yet, average pump prices dropped by only 18p, after hitting a high of 166.54p late October. Why? Supermarkets, which dominate fuel retail, dragged their feet, slashing prices by just 20p overall.
Diesel Drivers Hit Harder as Price Cuts Lag Behind
The diesel situation’s even worse. Over eight weeks, wholesale diesel prices fell a hefty 32p per litre. But pumps only shaved 20p, despite prices peaking at 190.41p at October’s close. Even supermarket diesel cuts matched that slow pace, leaving drivers overpaying for every litre.
Retailers Keep Margins Fat as Prices Fall
RAC data reveals forecourt price cuts stalled this week as wholesale prices crept back up. This pushed retailer profits back to “fairer” levels—but drivers fear an unfair hike, as shops are quick to raise prices without cause.
- In 2022, average petrol retailer margins climbed to 13.5p per litre (supermarkets 10.8p), up from 8.7p in 2021.
- Diesel margins rose too—to 10.3p (supermarkets 7.5p), up from 8.8p in 2021.
- Before the pandemic, 2019 margins were way lower: 6.5p for petrol, 6.9p for diesel.
RAC Sounds Alarm on ‘Rocket and Feather’ Pricing
“Our data shows pump prices rocket up with wholesale hikes but feather down sluggishly when costs drop,” said RAC spokesman Simon Williams.
“Supermarkets, who buy regularly and hold massive market power, were slow and stingy passing on price cuts, especially on diesel,” he added. “For struggling drivers facing the cost-of-living crisis, this is infuriating.”
“If retailers raise prices again now with no wholesale justification, it screams profiteering. The Government must act to make sure savings hit motorists instantly—not only to protect drivers but because fuel prices drive inflation.”
“The Competition and Markets Authority is already probing fuel pricing abuse. It’s time to crack down on this ‘rocket and feather’ gouging once and for all.”
