Friday 1 July 2022 06:33 PM Supermarkets lose their 'appetite' to cut fuel prices as retailers report surge ... trends now
Supermarkets have stopped cutting fuel prices to entice customers to their forecourts in spite of a dip in wholesale costs, motorists have been warned.
Figures from data firm Experian show that the big four supermarkets have not passed on their savings to their customers even as the cost of living crisis bites.
Latest numbers show that the average price of a litre of petrol at UK forecourts reached a new high of 191.4p on Thursday, while diesel rose to 199.1p.
The unprecedentedly sky high prices have driven a wave of verbal abuse towards forecourt staff by angry drivers, retailers have reported.
RAC fuel spokesman Simon Williams said the rise in the price of petrol illustrates 'the biggest retailers' resistance to reduce their pump prices in line with the lower wholesale cost of unleaded'.
He went on: 'Rather than passing on some of the savings they are benefiting from, they are clearly banking on the wholesale market moving up again which is disappointing for drivers who are desperate to see an end to ever-rising prices.
'Sadly, there no longer seems to be any appetite among the big four supermarkets to drive customers into their stores with lower pump prices.
Petrol prices reached record figures this week despite a fall in the wholesale price of petrol. The wholesale price includes product cost and fuel duty. The retail price includes product cost, fuel duty, delivery and distribution, retail margin (forecourt costs and retailer’s profit) and VAT.
Motorists can expect to pay in the region of 191p per litre according to data from the AA
'We question whether we will ever see much competition between supermarkets over fuel again, let alone a so-called 'price war'.'
Petrol retailers have come in for sharp criticism for a 'classic example of rocket and feather pricing', with pump prices not mirroring wholesale costs.
The concept of rocket and feather pricing for fuel involves retailers quickly hiking pump prices when the cost of oil rises, but being slow to pass on the benefits of decreases in oil prices.
The RAC claimed significant reductions in wholesale costs for petrol mean companies have a 'clear opportunity' to stop continuously hiking pump prices.
And drivers across Britain have been letting front line workers know about their feelings towards the retailers' unwarranted price hiking.
Jack Cousens, head of roads policy at the AA, said:
