Drivers hit by surging fuel prices as RAC says retailers are overpricing petrol by 7p a litre

Drivers are being hit by another rise in fuel prices, with the cost of petrol and diesel rising for the fourth month in a row – and further rises expected before the end of the year, causing further misery for motorists.

The average petrol pump price in Britain rose by almost 5 cents per liter in September, from 152.49 cents to 157.01 cents.

This is the 13th largest monthly price increase in the past 23 years and comes on top of the 7p increase recorded in August, the RAC said.

Diesel rose by more than 8 pence per litre, from 154.78 pence at the start of September to 163.11 pence at the end of the month – the fifth largest monthly increase since 2000.

The automotive group today warned that there will be ‘little respite’ from rising prices in the coming months, regardless of what fuel drivers fill up, and accused retailers of making higher profits on unleaded petrol, despite a recent investigation by the watchdog into the fuel sector.

But the Petrol Retailers Association this morning pushed back on the RAC’s suggestion, saying it is ‘disappointing to read such sensational claims’.

According to the RAC’s monthly fuel price update, filling a typical 55-litre fuel tank of a petrol family car now costs motorists an average of £86 – the highest yet in 2023, rising above levels last seen in December .

Those driving an equivalent diesel car can export, spending almost £90 on every visit to a petrol station forecourt.

That’s £4 more expensive compared to August, and the highest price since April this year.

Recent cuts in global oil production have seen the cost of a barrel rise from $89 to around $96 in September, which – combined with the weaker value of sterling against the dollar – means that the wholesale cost of fuel for British sellers are rising.

Yet the RAC believes retailers are still not playing fair with the country’s motorists, especially those who own and operate petrol vehicles.

“Drivers are unfortunately starting to really suffer again at the pump with a further 8 cents per liter being added to the average diesel price in September, following a similar increase in August,” RAC fuel price spokesperson Simon Williams explained.

‘The price of petrol has also risen by 11 cents since the start of August, so there is little respite no matter what fuel drivers use.

‘Our analysis of RAC Fuel Watch wholesale and retail data shows that petrol is currently around 7 cents per liter overpriced, although the price of diesel is likely to rise further in the coming weeks.’

Williams says the return of retailers boosting their margins is ‘worrying’ given the recent investigation by the Competition and Markets Authority (CMA), which slapped the big four supermarkets on the wrist after finding they lost £900m last year many had charged drivers for fuel.

“While many retailers have voluntarily started publishing their prices before they are legally required to do so, we still have a situation where changes in wholesale prices are not fairly reflected at the forecourt,” he said.

‘Over the past two weeks the wholesale cost of diesel has become 10 cents per liter more expensive than that of petrol, and yet the gap at the pumps is only 5 cents.

If retailers as a whole were to play fair with drivers, gasoline would be at least 7 cents cheaper than it is today, to about 150 cents from the current average of 157 cents.”

“Retailers do not rip off drivers,” says PRA

This morning fuel retailers have hit back at the RAC’s suggestion they increase their prices to exploit drivers.

“Contrary to RAC claims, our members are not unfairly pricing petrol higher than necessary,” said Gordon Balmer, executive director of the Petrol Retailers Association (PRA) – which represents independent petrol stations making up almost two-thirds (64 per cent). ) of British petrol stations.

‘Fuel margins are under pressure due to the higher operational costs that our members have had to bear.

“To cope with rising labor costs, energy costs, the highest inflation rates in recent years and reduced fuel sales, margins have inevitably increased.”

He added: ‘Trying to stir public anger by suggesting otherwise is deeply irresponsible.

‘It is disappointing to read such sensational claims in the media about fuel margins.

“I have consistently reached out to commenters seeking rational discussion on this issue. Unfortunately, my requests seem to have gone unanswered.

‘The PRA remains committed to our members and promoting transparency within the sector.

“We are willing to engage with any mediator to facilitate a constructive and informed dialogue on these critical issues.”

Rising fuel prices are the biggest financial concern for motorists, according to a new poll

A new survey of 2,000 motorists by Close Brothers Motor Finance shows that rising fuel prices will be the biggest concern for motorists over the next 12 months. 51 percent of respondents call this a major financial challenge.

Of greater concern are rising car insurance premiums (34 percent), the cost of purchasing a new car (22 percent) and increases in road tax (19 percent) – and even more than the expansion of ULEZ and the introduction of other daily charging zones across the country (13 percent).

The research also shows that one in ten (11 percent) people have to ask to contribute to petrol costs if they get a lift.

And more than a quarter (27 percent) have had to cut back on the number of car trips.

Lisa Watson, sales director at Close Brothers Motor Finance, said: ‘The continued rise at the pumps will add further pressure on drivers who already feel they are facing higher costs across all lanes.

“Consumers across the country are looking for ways to address the ongoing cost of living crisis.

‘With high interest rates, inflation and rising prices at petrol pumps – many are now having to explore other measures to further stretch their finances – including charging loved ones for fuel when they get a lift.’