Petrol and diesel prices dropping too slowly at the pump

There is evidence that ‘rocket and feather’ fuel pricing happened in 2022, according to a report published by the Competition and Markets Authority (CMA). 

This is when petrol and diesel prices rise as wholesale costs rise, but then fall more slowly than costs come down. 

The CMA found evidence of rocket and feather pricing across all retailers in March and April 2022, particularly for diesel prices. 

It also said that 2022 as the most volatile year for fuel prices on record and that changes in retail pricing, require further investigation. 

The RAC said this was a widespread problem and Christmas fuel prices were more expensive than they should be. 

RAC fuel spokesperson Simon Williams said: ‘When wholesale prices trend down for weeks at a time drivers should see pump prices do the same at a similar rate – unfortunately our data shows that this is not often the case. 

‘What’s happening now – as it was last December – is a massive downward shift in the price of wholesale fuel with a slow dropping of forecourt prices. Consequently, drivers are set for a more expensive time on the roads this Christmas than it should be. 

‘We strongly urge the biggest retailers to lower their prices. Unfortunately, we fear they are holding out, hoping for a rise in the price of oil later this month.’

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Rising fuel prices adversely affecting UK businesses, industry warns

The motoring industry has warned that rising prices for both petrol and diesel are adversely affecting UK businesses.

Data published by the RAC revealed that, during May, petrol prices rose by 6p per litre – representing the ‘worst monthly rise in at least 18 years’.

Meanwhile, the average price of a litre of diesel also rose by 6.12p, constituting the ‘second worst rise’ since the beginning of 2000.

Fuel prices have risen ‘every single day since 22 April’, the RAC found.

It stated that the cost rises can be attributed to a combination of rising oil prices and a weaker pound, and will ultimately affect businesses and individuals alike.

Commenting on the issue, Simon Williams, Fuel Spokesman at the RAC, said: ‘The rising oil price, together with a weaker pound, is a punitive combination for anyone who drives regularly.

‘For many people, there is little alternative to the car for the majority of journeys they have to make, so it is therefore very difficult to avoid feeling the pinch of rising pump prices.’

Petrol prices nearing £1 a litre following further cuts

07 Jan 2015

Petrol prices are edging closer to the £1 a litre mark, following the announcement of further cuts by the UK’s four biggest supermarkets.

Tesco, Asda, Morrisons and Sainsbury’s confirmed that they would be reducing pump prices by 2p a litre for both petrol and diesel.

The move follows significant reductions in the price of oil, with Brent crude now costing less than $52 a barrel.

Simon Williams of the RAC has welcomed the news, commenting, ‘The cuts are bringing us ever closer to the £1-per-litre average for petrol’.

However, while the cuts will benefit motorists and businesses, Chancellor George Osborne has called for the fall in wholesale prices to be passed on to consumers across all industries, including utility firms and airlines.

HM Treasury is currently considering whether any action needs to be taken to ensure that industry is passing on the cost savings to consumers.

Petrol prices ‘set to fall further’ as inflation reaches 12-year low

17 Dec 2014

UK inflation fell to a twelve-year low in November, fuelled largely by a significant drop in the price of petrol – a trend which is set to continue, according to the RAC.

Recent figures from the Office for National Statistics (ONS) have revealed that CPI inflation fell to 1% in November, from 1.3% in October.

The RAC has predicted that based on current trends, petrol prices will continue to fall, reaching less than £1 a litre by early 2015.

The average price of a litre of petrol now stands at 116.9p, while diesel costs an average of 122.33p a litre.

The British Chambers of Commerce (BCC) welcomed the news of a fall in inflation. David Kern, Chief Economist at the BCC, said, ‘These figures will make it easier for the MPC to resist calls for higher interest rates. The UK recovery is still facing challenges, so a prolonged period of low interest rates will help to underpin business confidence and support investment’.

However, some experts have warned that a further fall in inflation could have an adverse impact on the economy.