Retailers are told to cut fuel prices

Fuel prices
Fuel prices
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MOTORING ORGANISATION the RAC has claimed petrol retailers should be making bigger price cuts to reflect wholesale costs.

Asda, Sainsbury’s, Tesco and Morrisons announced that they will drop the price of unleaded and diesel by 1p per litre. But RAC fuel spokesman Simon Williams commented: “We would like retailers to make bigger cuts as wholesale prices indicate that there is a saving of at least 3p a litre on petrol and well over 2p on diesel that they should be passing on at the pumps.”

The lower wholesale prices are being driven by an over-supply of oil, keeping the cost of a barrel under 52 US dollars since early August. This has led to a reduction in the price paid by retailers. Mr Williams went on: “If (retailers) were to pass on more of these savings, we would see both petrol and diesel heading back towards the six-year low average prices we saw at the beginning of the year.”

According to the RAC, the average price of petrol stands at 109.2p, while diesel is 111p. The average prices in early February were the lowest for six years at 106.9p for petrol and 113.3p for diesel.