Fuel prices are possibly up to 12p per litre too high according to the experts who wish to see costs below 90p per litre. This would bring costs back into line with retailer wholesale costs and ensure firms were passing savings onto affected motorists.
“Average UK filling up costs are still shockingly, 8–12p per litre higher than necessary, showing the Covid19 fuel supply chain rip-off of motorists is still running amok.
“The Government and the CMA (The Competition and Markets Authority) must step in to stop such blatant profiteering in a time of crisis. A PumpWatch pricing watchdog must be put in place now.”
Mr Cox says average retail margins were around 10 to 12p per litre before the crisis but have dramatically increased over the recent months.
Petrol Profits have “rocketed” to 25p per litre in a 101 percent increase in total profits since the coronavirus outbreak began.
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FairFuel says diesel profit margins have also increased from 13p before the crisis to 22p in a dramatic 67 percent increase.
The group said the increases ensured drivers were being “fleeced” by the fuel suppliers in a time of financial hardship for many.
A breakdown from FairFuel revealed the wholesale price of petrol has fallen by 24p between February and May.
Wholesale oil prices were also down 53 percent despite the measly nine percent reduction in retail petrol prices.
RAC spokesman Simon Williams praised the move which he says ensured prices were “more reflective” of what the retailer was paying for the fuel.
However, Mr Williams did warn the low prices may not persist with early indicators suggesting wholesale prices have started to rise.
Government data shows fuel prices across the UK have fallen for 14 consecutive weeks since the end of January.
Petrol has fallen over 20p per litre over the past few months with costs falling from 132.88p per litre to 107.56p per litre.
In a statement provided to Express.co.uk, the CMA said complaints were largely focused on price rises for household products such as “food and drink” and “personal care items”.
They said more recent complaints centred around cancellations and refunds have “started to overtake” price rise issues.
The CMA said they will “continue to monitor” complaints and will “not hesitate” to take action where they find evidence companies have behaved illegally.
Published at Tue, 12 May 2020 09:29:00 +0000