There’s ‘no good reason’ for Britain’s soaring fuel costs, RAC says

The RAC is demanding fuel costs are dropped
The RAC is demanding fuel costs are dropped
  • The motoring body’s comments come as fuel prices hit their highest levels since 2014
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PRICE rises in the cost of petrol cannot be justified, a motoring organisation has today claimed.

The RAC has said there is ‘no good reason’ why fuel retailers across Britain are refusing to cut prices.

Costs in fuel have surged since last month

Costs in fuel have surged since last month

Forecourt prices should be reduced by 2p per litre (ppl) to reflect a drop in wholesale costs, according to the organisation.

Drivers have suffered a rise in fuel prices almost every day since the end of April despite wholesale costs coming down by around 2.5ppl since May 24.

Average UK forecourt prices currently stand at £1.29 per litre for unleaded and £1.33 for diesel.

This is the most expensive both fuels have been since September 2014.

The RAC says recent falls in wholesale costs have been caused by the US drilling for more oil than in recent years, increased output from Russia and ongoing speculation oil producing group Opec will end its restriction on production.

RAC spokesman Rod Dennis said: ‘Our data shows it’s high time retailers cut the price of petrol and diesel at the pumps.

‘We see no good reason for them to wait before passing on savings they are benefiting from.

‘Motorists really felt the impact of rising prices in May, when the cost of filling up a petrol family car jumped by around £3.30 in a single month.

‘We are now well into June, and drivers are still waiting for some relief to rising prices.

‘There remains a risk that the cost of a barrel of oil could go up again.

‘In such an instance the retailers are unlikely to pass on any savings they have banked during this period, but instead will start passing on future increases at the pump.’

Motoring fuel prices are affected by the price of crude oil. As crude oil is priced in dollars, the exchange rate also plays a part.

Last month, there was a record rise in the price of petrol, largely as a result of the oil price peaking at $80 and a weakening of sterling against the dollar.

But since the end of May the oil price has been falling, and so have wholesale fuel prices.

However, Brian Madderson, chairman of the Petrol Retailers Association, said: ‘We are in the middle of one of the most volatile periods of wholesale price movements we have seen for some time.”

He told the BBC retailers will reduce prices if they think they can do, and are ‘not going to price at an insult level’.