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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Energy

Fuel prices too high but unlikely to fall, says RAC

Motorists are still paying inflated prices for fuel at the forecourt, according to the latest monthly data from the RAC, with no signs of a decrease soon.

Prices are, on average, between 5p and 8p a litre more than they should be, according to the motoring lobby group.

Motorists, on average, paid 145p for petrol and 150p for diesel, both unchanged from the previous month, even though wholesale price falls should have seen retail prices at 140p and 142p, respectively.

Forecourt owners are pocketing the difference, said the RAC, pointing to around a 15p per litre margin compared to 8p before the pandemic.

Simon Williams, the RAC’s head of policy, said: "It's disappointing to see fuel prices remain far higher than they should be, especially after the Competition and Markets Authority (CMA) announced at the end of July that drivers were overcharged by an astonishing £1.6 billion last year.

"With our analysis clearly showing margins are still significantly above the long-term average, it seems like nothing has changed and drivers continue to lose out despite all the ongoing scrutiny from the CMA and the Government.

"Coupled with this, the wholesale fuel market is trending lower due to the price of oil falling by 6 US dollars to around 80 US dollars at the end of July.

"This, in itself, ought to lead to lower prices at the pumps, but as the CMA made clear in its report, competition in fuel retailing is extremely weak.

"As a result, we sadly can't see pump prices reducing much further."

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