Fuel Prices Drop but Drivers Still Ripped Off at the Pumps
Fuel prices dipped slightly in April, but drivers are still not getting a fair shake, despite wholesale costs falling for over a month. Analysis from RAC Fuel Watch reveals supermarkets and forecourts are dragging their feet on passing savings to motorists.
Fuel Price Cuts Too Small and Slow
The average unleaded price fell by just 2.4p last month, from 150.31p to 147.88p per litre – saving about £1.30 per tank. Diesel saw a bigger drop of 4.5p to 153.58p a litre. But supermarket cuts were paltry: unleaded dropped only 1.2p, and diesel 3.4p.
The wholesale price of fuel has been tumbling since late April, yet pump prices stubbornly refuse to drop in line. Retailers are pocketing fat margins—13p per litre on petrol and 16p on diesel—compared to a long-term average of around 8p.
Supermarkets Fail to Pass on Savings
The days of Asda boasting the cheapest fuel are over. RAC data shows Tesco, Morrisons, and Sainsbury’s now undercut Asda by more than 2p per litre on both petrol and diesel. Yet even the best deals are nowhere near low enough.
Northern Ireland offers the biggest savings, with petrol at 141.4p a litre and diesel at 142.5p—5.7p and 9.9p cheaper than the UK average. Elsewhere, bargain hunters can find petrol for under 139p in Bishop Auckland and St Leonards-on-Sea" data-wpil-keyword-link="linked">St Leonards-on-Sea, and diesel under 143p in Arbroath, Scotland.
RAC Slams ‘Rocket and Feather’ Pricing
“A month of decreasing fuel prices should be great news for drivers, but the slow trickle of price cuts at forecourts is worrying,” said RAC senior policy officer Rod Dennis.
“We’re stuck in ‘rocket and feather’ territory—prices shoot up fast but fall in dribs and drabs. Retailers are hiking margins even while wholesale costs drop, meaning drivers pay far more than they should. This is especially galling given the 5p per litre fuel duty cut introduced over two years ago.”
“Asda’s pledge to offer the cheapest fuel has fallen flat, with rivals and independents undercutting it. Price competition is rare, and drivers remain the losers.”
CMA Steps In to Tackle Fuel Rip-Offs
New powers granted to the Competition and Markets Authority on 24 May 2024 will let it crack down on unfair pricing practices and demand transparency. The RAC hopes this will put an end to the postcode lottery and the ‘rocket and feather’ effect, ensuring drivers pay a fair rate.
The RAC warns the next UK government must decide whether to keep the fuel duty cut in place. Despite it, UK fuel prices remain among the highest in Europe—diesel is the costliest on the continent, and petrol ranks in the top 10 most expensive.
What Drivers Could Save if Retailers Played Fair
- Fuel prices across mainland UK would drop to Northern Ireland levels
- The postcode lottery of wildly varying fuel prices would end
- ‘Rocket and feather’ pricing would be erased, so pump prices reflect wholesale changes fairly
- Diesel drivers wouldn’t get hit with higher hidden margins subsidising petrol prices
Fuel Price Chaos Continues
RAC’s supermarket price analysis reveals massive differences of 8p to 40p a litre between cheapest and most expensive brands. With the General Election looming, fuel pricing is set to be a hot political potato as drivers demand relief from soaring costs.
