Home Life & Style Fuel pump horror: Retailers refuse to pass savings as profit margins soar...

Fuel pump horror: Retailers refuse to pass savings as profit margins soar to 12p per litre

Experts at the AA warn that retailers passed on up to 60 percent of the savings due to the collapsed oil wholesale costs under the first UK shutdown. However, during the second lockdown firms have reduced costs by the barest of margins with some falling by just half a penny.

He said: “In the first lockdown, as the price of oil and wholesale petrol plummeted, the fuel trade passed on 60 percent of the savings they could have.

“This time, after a second wave of coronavirus sent the cost of oil and fuel falling again, average pump prices have only dipped.”

“In the spring, car use fell as low as 22 percent. At the start of this week, it’s down to 70 percent.

“Drivers wait to see if ‘lower fuel demand’ gets trotted out again as the excuse for many retailers not passing on potential savings.”

Asda is also cheapest for diesel with costs at just 111.49 pence compared to 113.51 this time last month.

The massive 2.02 pence reduction was the third-highest for diesel fuel with Sainsbury’s 2.05ppl reduction just ahead.

But Tesco saw the highest reduction for diesel costs with a massive 2.35 pence per litre fall from 114.93 to 112.58 ppl.

But it’s not all bad news for motorists with overall pump prices remaining stable for yet another week.

Average petrol prices have fluctuated between 112p a d 113p per litre since July and currently stands at 112.35pence.

Government analysis puts the average price of diesel at 117.07pence, down slightly from the 118p recorded just two weeks ago.

However, analysis from RAC Fuel Watch has warned that prices across the board are “very likely to come down” within the coming weeks.


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