Diesel Prices Outrageously High Despite Wholesale Parity
Fuel prices dropped slightly in February, with unleaded petrol down 1.26p to 147.72p per litre and diesel off 3.19p to 167.19p. Filling up a 55-litre family petrol car now costs £81.25, down 69p from January, while diesel tanks cost £91.95, down nearly £1.80.
But there’s a sting in the tail for diesel drivers. The RAC reveals a glaring discrepancy: wholesale prices for diesel and petrol were just 6p apart throughout February, yet diesel costs drivers a whopping 20p more at the pumps. That’s around £7 extra per tank for millions of diesel motorists — an unfair premium the RAC says should be slashed to a fairer 155p a litre.
Fuel Duty Hike Looms – Pain at the Pump Incoming?
Next month’s Spring Budget could hit drivers hard. The government’s 5p fuel duty cut, introduced a year ago, is at risk of being scrapped, which would push petrol prices up to 153.72p per litre and diesel to 173.19p with VAT included.
The RAC warns this “pump price shock” would come at the worst possible time, piling more strain on households already squeezed by soaring living costs.
Diesel Price Riddle: Wholesale vs Retail
Looking back a year, petrol is actually cheaper now (147.72p vs 151.16p), but diesel prices have jumped significantly (167.19p vs 154.75p) despite wholesale diesel costs barely moving (119.09p now compared to 122.76p). It’s clear retailers aren’t passing on the savings to diesel drivers.
RAC fuel spokesman Simon Williams said: “A reduction in pump prices is usually good news, especially during a cost-of-living crisis. Petrol drivers seem to be paying fair prices, but diesel drivers are still being ripped off.
“Retailers need to cut diesel prices now since wholesale costs are almost identical to last year but pump prices remain unnecessarily high.
“All eyes are on the Chancellor’s Budget decision. While the 5p duty cut can’t last forever, removing it now would punish families and businesses already struggling. It could also push UK fuel duty to the highest rate in Europe, with serious impacts on inflation and the economy.
“We hope Mr Hunt doesn’t become the first Chancellor in 12 years to let the annual fuel duty rise go ahead — the damage could be huge.”
