Petrol Pump Pain for Motorists

Prices are expected to rise at the petrol pumps once again as already squeezed motorist finances take another hit.

The AA has issued the warning that previous drops in cost may have bottomed out, with the average cost of a litre of petrol hitting 148.8p recently.

Pushed up in part by a rise of $8 - $10 in the value of a barrel of oil, the AA has pointed to UK retailers pocketing an additional 5p per litre profit in 2022, failing to pass on savings to the motorist, as another reason why motorists are suffering at the pump.

RAC fuel spokesman Simon Williams told thisismoney.co.uk: “Drivers are likely to see pump prices rise gradually this year as oil is predicted to go up due to growing demand from China as it reopens after its Covid restrictions.

“But while the price of petrol has clearly bottomed out, diesel is still too expensive based on its wholesale cost.

“We urge the Government to focus on ensuring retailers quickly pass on savings to drivers every time there is significant downward movement in the wholesale price of fuel.”

An ongoing Competition and Markets Authority investigation has found evidence of a ‘rocket and feather’ approach to pricing by retailers, where prices quickly reflect rising wholesale costs but don’t drop anywhere near as quickly when prices go down.

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