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

Drivers are being hit by a fresh rise in fuel prices, with the cost of petrol and diesel rising for the fourth month in a row, and further increases expected before the end of the year, heaping more misery on motorists. .

The average price of petrol in the UK rose by almost 5p a liter in September, rising from 152.49p to 157.01p.

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

Diesel soared more than 8p a litre, from 154.78p at the start of September to 163.11p at the end, the fifth-largest monthly rise on record since 2000.

The car group warned today that there will be “little respite” from rising prices in the coming months, regardless of which fuel drivers fill up, and accused retailers of pocketing bigger profits on unleaded petrol, despite a recent watchdog investigation into fuel sector.

But the Petrol Retailers Association responded to the RAC’s suggestion this morning, 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 family petrol car today will cost drivers £86 on average, the highest figure yet in 2023, surpassing levels seen by last time in December.

For those driving an equivalent diesel car, you can export and shell out almost £90 with each visit to the service station.

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

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

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

“Unfortunately, drivers are starting to suffer again at the pumps, with a further 8p per liter added to the average diesel price in September, following a similar increase in August,” the pricing spokesperson explained. RAC Fuel Engineer, Simon Williams.

‘Petrol has also risen 11p since the beginning of August, so there is little respite regardless of what fuel drivers use.

“Our analysis of RAC Fuel Watch wholesale and retail data shows that petrol is currently overvalued by around 7p a litre, although the price of diesel is likely to rise further in the coming weeks.”

Williams says the return of retailers increasing 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 discovering they had charged customers. drivers overpaid for fuel by £900 million last year.

‘Although many [retailers] “They have started publishing their prices voluntarily before the law requires it, we still have a situation where wholesale price changes are not fairly reflected at gas stations,” he said.

‘In the last two weeks, the wholesale price of diesel has become 10p per liter more expensive than petrol, but the difference at the pump is only 5p.

If retailers as a whole played fair with drivers, petrol would be at least 7p cheaper than it is now, up to around 150p from its current average of 157p.’

“Retailers are not ripping off drivers,” says PRA

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

“Contrary to RAC claims, our members are not unjustifiably pricing petrol higher than necessary,” said Gordon Balmer, chief executive of the Petrol Retailers Association (PRA), which represents petrol stations. independents representing almost two thirds (64 per cent) of Britain’s service stations.

‘Fuel margins have been under pressure due to the increased operating costs our members have had to endure.

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

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

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

‘I have constantly approached commentators, seeking a rational discussion on this matter. Unfortunately, my requests appear to have gone unanswered.

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

“We stand ready to collaborate with any mediator to facilitate a constructive and informed dialogue on these critical issues.”

Rising fuel prices are the biggest financial concern for drivers, new survey finds

A new survey of 2,000 drivers by Close Brothers Motor Finance found that rising fuel prices are the biggest concern for motorists over the next 12 months, with 51 per cent of respondents ranking it as a major financial challenge.

It is a bigger concern than rising car insurance premiums (34 per cent), the cost of buying a new car (22 per cent) and road tax increases (19 per cent) – and even more than the expansion of ULEZ and the introduction of other daily charging zones throughout the country (13 percent).

The study also found that one in ten (11 per cent) have to ask people to contribute to the cost of petrol when they get a lift.

And more than a quarter (27 percent) have had to reduce the frequency of driving their car.

Lisa Watson, sales director at Close Brothers Motor Finance, said: “The current increase in pumps will add further pressure to drivers who already feel they are facing higher costs across all lanes.”

‘Consumers across the country are looking for ways to address the current cost of living crisis.

“With high interest rates, inflation and rising prices at the petrol pump, many are now having to explore other measures to further stretch their finances, including charging loved ones for fuel when they drive them.”