Motorists ripped-off by up to 3.5% at petrol pumps
We’re paying more for our fuel than we should be.
Thanks to fewer concerns over oil supply in the Middle East, lower fuel demand and a stronger pound, wholesale oil prices have fallen over the past few months.
But oddly fuel costs for motorists aren’t matching the drop in wholesale prices, says the AA.
UK petrol pump prices are currently averaging at 131.6p a litre which is an improvement on last week’s 131.70p. However, they averaged 130.47p a litre a month ago. Why aren’t costs coming down?
Location, location, location
According to the AA’s findings, fuel costs are particularly high in areas of the UK which don’t have ASDA supermarkets to force prices from competitors down.
In general, petrol in Northern Ireland is the most expensive in Britain at 132.4p a litre while motorists in Yorkshire and Humberside pay the least at 131.2p.
Diesel is consistently the more expensive fuel despite being cheaper than petrol elsewhere in Europe. It is on average 4.5p dearer than the market indicates it should be.
Scotland has the priciest diesel at 136.6p per litre, and again, those lucky drivers in Yorkshire and Humberside have the lowest at 135.7p.
EU intervention
To tackle this issue, the EU is considering price caps to end ‘profiteering’, as detailed in the European Commission’s (EC) own research.
The EU body has found that European motorists lose £10 billion a year as a result of poor treatment from fuel retailers. Most complaints concern pricing, labelling at the pump, inadequate information about fuel and a lack of regulatory enforcement.
They are especially impressed with the way Austria handles fuel costs. All retailers must notify the authority about their price changes and are only allowed one price rise a day. Since regulation was introduced in 2011, there has been a 3.6% reduction in fuel costs.
Price Tracking
The EC wants better competition through better price comparison, stating that drivers should be well-informed of these comparison sites. They also want fuel retailers to contact authorities to keep them up-to-date with their latest prices for the websites.
Read How to find cheaper petrol and diesel.
Do you feel ripped-off by fuel retailers? What do you think about EU Intervention? Tell us in the comments section below.
More on fuel pricing:
How to find cheaper fuel and petrol
OFT decides against fuel price inquiry
Rural drivers face rising fuel costs
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