Belfast Telegraph

Home News UK

Petrol price fall 'not passed on'

The dip in the price of petrol at the pumps has failed to match the fall in wholesale prices, the AA has revealed.

In the past week, average UK petrol prices have fallen less than 1p a litre despite falls in wholesale prices equivalent to at least 3p a litre, the AA said.

Petrol at the pumps is now averaging 135.71p a litre, with diesel at 139.89p a litre.

The mid-August figures compare with mid-July figures of 135.62p a litre for petrol and 139.68p for diesel. Compared with a year ago, petrol is 19.22p a litre more expensive, while diesel costs 20.91p more.

Filling a typical 50-litre petrol tank now costs £9.61 more than a year ago, adding £40.81 to the monthly petrol spend of a two-car family. Filling a commercial van's 80-litre tank with diesel now costs £16.73 more than 12 months ago.

Currently, Northern Ireland is the most expensive region for petrol (136.7p a litre) while Yorkshire and Humberside is the cheapest part of the UK (134.9p). Northern Ireland was also most expensive for diesel (140.8p a litre), nearly 2p a litre more expensive than the cheapest region - Yorkshire and Humberside (139.0p).

AA public affairs head Paul Watters said: "Supermarkets announced that they would be cutting pump prices this week and, hopefully, the drop in wholesale costs will be more properly reflected at the pumps.

"However, there is clearly a need for price transparency covering oil, wholesale and retail markets, taking into account the exchange rate."

He went on: "Choosing when and how to pass on lower fuel costs to the customer, whether as straightforward pump price cuts or money-off vouchers tied to spending in store, carries risks.

"Many independent retailers seized their chance over the past fortnight to undercut two of the major supermarkets and, with a six-mile or more round-trip to a superstore costing a litre of petrol, cash-strapped consumers may have looked closer to home for their fuel and top-up shopping."


From Belfast Telegraph