Motorists are ‘getting raw supply at the pump despite cheaper petrol due to crowded forecourts’ – with experts saying prices are set to fall by 10p a liter
- August average fuel prices fell at the fastest rate since records began
- However, the RAC stated the 12.3p drop in average prices was not enough
- During the same month, the pound recorded its worst performance against the US dollar
Gasoline vehicle drivers are getting a ‘raw deal’ at the pumps despite falling oil prices, the RAC warned yesterday.
He said that although average forecourt prices fell to 169.8p per liter at the end of August, current wholesale costs mean they should be around 161p.
The 12.3 pence drop in average prices in August was the biggest monthly fall since records began 22 years ago. But the RAC said that was not enough.
However, the average diesel price at the end of August was 183.7p, which the car group described as “a fairer reflection of wholesale costs”.
The 12.3 pence drop in average prices in August was the biggest monthly fall since records began 22 years ago. But the RAC said it wasn’t enough
Spokesman Rod Dennis added: “Twelve pence a liter is a lot to bring prices down in a single month, so there’s no doubt things could be worse.”
“But in reality, gas-powered vehicle drivers are still invariably underpaid at the pumps.
Major retailers are choosing not to pass on the full wholesale lead-free price reductions they have long enjoyed.
“There are very good reasons for the bigger fuel sellers to cut their forecourt gas prices further.
“Taking into account a generous 10p a liter markup, we should see petrol selling for around 161p a litre. Some major supermarket sites aren’t too far off from this – but there is a veritable postcode lottery , with prices varying wildly, drivers need to shop around to find the best deal.
A review by the Competition and Markets Authority has found the rising cost of oil refining to be a major cause of soaring fuel prices this year. He said that figure had more than tripled in 12 months to nearly 35 pence a litre. The RAC fears it could resume soon if Opec, the organization representing many of the biggest oil-producing nations, cuts output when it meets next week.
The pound also recorded its worst performance against the US dollar last month since October 2016, with 1 pound worth just $1.16 as of August 31. As oil is traded in dollars, this makes buying oil more expensive for Britain.
The RAC analysis in August also found the UK government to be one of the least generous when it came to helping drivers cope with high petrol and diesel prices.
For example, France increased its fuel rebate on September 1, pushing pump prices below £1.50 a liter across the country.
Mr Dennis urged the new Prime Minister to cut fuel taxes, adding: ‘Fuel can be a significant part of a household’s monthly outgoings.’ With many people dependent on cars, drivers need all the help they can get.
Are electric cars always cheaper?
For comparison, we calculated the difference between the annual home charging costs for an electric Volkswagen ID.3 (left) and the annual fuel bills for a petrol-powered Volkswagen Golf hatchback (right)
Although they may be more expensive to buy, new or used, electric cars have a substantial saving advantage over gasoline-powered vehicles in terms of running costs.
Even taking into account range figures that are optimistic in the real world, electric car owners enjoyed a much lower cost per kilometer when you compare the cost of charging to filling up at a gas station.
But soaring energy prices have narrowed the gap and the news that Ofgem will raise the energy price cap from October 1, from £1,971 to £3,549, for the average household, will hit owners of electric vehicles.
But how much have things changed when it comes to the difference between charging and refueling?
We’ve crunched the numbers and while this may be bad news for EV owners without home charging facilities, for those able to charge at home even on a standard price cap tariff, it’s still cheaper. : at 11.6 pence per mile when the energy price cap is driven in a month for a VW ID.3 compared to 15.5 pence per mile for a 1.5-litre petrol VW Golf.
Find out more in our comprehensive guide: Is it cheaper to run an electric car than a petrol one with rising energy prices?
Motorists get gross supply at the pump despite cheaper oil prices