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Petrol price levels cannot be justified says RAC

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Petrol pump

The RAC says the present petrol price is just too excessive and cannot be justified.

The motoring organisation is urging retailers to cross on latest falls within the wholesale value of petrol.

It says there’s “no good reason” for conserving costs as excessive as they’re and says petrol retailers ought to lower forecourt costs by 2p a litre.

But a gas retailers affiliation mentioned wholesale price and greenback volatility had added to pressures on unbiased petrol stations.

The RAC says gas costs have risen virtually every day for the reason that finish of April, regardless of wholesale prices coming down by round 2.5p per litre since May 24.

It says diesel costs have been rising for even longer, with supermarkets elevating the price each single day for the reason that 27 March.

Average UK forecourt costs at the moment stand at £1.29 per litre for unleaded and £1.33 for diesel.

Motoring gas costs are affected by the price of crude oil. As crude oil is priced in , the trade price additionally performs a half.

In May, there have been document rises within the price of petrol, largely as a results of the oil price peaking at $80 and a weakening of sterling towards the greenback.

But for the reason that finish of final month the oil price has been falling, and so have wholesale gas costs.

RAC spokesperson Rod Dennis mentioned: “Our knowledge exhibits that it is excessive time retailers lower the price of petrol and diesel on the pumps – we see no good motive for them to attend earlier than passing on financial savings they’re benefiting from which have been led to by falling wholesale costs.

“Motorists really felt the impact of rising in prices in May, when the cost of filling up a petrol family car jumped by around £3.30 in a single month. We are now well into June, and drivers are still waiting for some relief to rising prices.”

However, Brian Madderson, chairman of the Petrol Retailers Association, mentioned: “We are in the middle of one of the most volatile periods of wholesale price movements we have seen for some time.”

He mentioned the retailers will scale back costs in the event that they suppose they will do, and are “not going to price at an insult level”.

However, Mr Madderson stated that fluctuations within the greenback towards sterling, plus necessities on retailers so as to add extra biofuels to diesel and petrol, had helped push up costs.

He also stated that he may solely see petrol costs going up as volumes of gross sales fall because of the take-up of hybrid and electrical automobiles as retailers attempt to keep margins.

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