Fuel Rip-Off: Drivers Stung by Just 2p Petrol Price Cut Despite Wholesale Plunge
UK drivers were slapped with a petrol price shock in December after the average pump price dropped a measly 2p per litre—far less than it should have. RAC Fuel Watch data reveals motorists forked out a staggering £156 million extra last month because retailers hiked their margins instead of passing on wholesale savings.
Big Margins Mean Bigger Bills at the Pumps
Unleaded petrol slipped from 147.47p to 145.48p per litre, yet it should have been closer to 135p if shops had stuck to normal margins. Diesel followed suit, falling just under 2p from 150.80p to 148.92p, despite wholesale costs suggesting a price nearer 142p.
- Retailers pocketed 16p per litre on petrol—nearly triple the usual 6p margin.
- Diesel margins ballooned to 12.5p per litre instead of the typical 6p.
With wholesale prices averaging 106p for petrol and 112p for diesel (including delivery), drivers should have enjoyed much fairer pump prices after VAT at 20%.
Costly Consequences for Motorists
The inflated margins cost petrol drivers an extra £6 per fill-up (55 litres), totaling £80 instead of a fair £74. Diesel drivers paid nearly £4 more, coughing up £82 instead of £78. The rip-off equates to an eye-watering £5 million a day nationwide in December alone.
“December was a rotten month for drivers as they were taken advantage of by retailers who rewrote their pump price strategy, costing motorists millions of pounds as a result,” said RAC fuel spokesman Simon Williams. “Their refusal to pass on wholesale savings and adding an extra 10p on top of the long-term 6p margin is nothing short of scandalous.”
Retailers’ Price Play Raises Eyebrows and Treasury Tills
Williams blasted retailers for exploiting public concern over energy prices, gambling the oil price would rebound—which it did. This price juggling means drivers pay extra VAT on inflated costs, fattening the Treasury’s coffers as a side effect.
He urged ministers to pressure retailers to pass wholesale price cuts to consumers, warning the only silver lining from sky-high fuel prices is the push towards electric vehicles. Drivers clocking 9,000 miles annually could save approximately £1,500 by switching.
Budget Fuel Spots and Price Comparisons
RAC’s data revealed Asda as the cheapest petrol retailer with prices averaging 141.81p per litre, closely trailed by Sainsbury’s at 142.57p. Asda also led on diesel prices, selling at 144.9p, just ahead of Morrisons on 145.8p.
Motorway prices remained steep with unleaded hitting 160.55p and diesel even higher at 163.43p per litre by December’s end.
To ease the pinch, RAC offers competitive EV leasing deals and affordable home charging tariffs fixed until June 2023, with overnight rates as low as 6p per kilowatt-hour.
