Soaring fuel prices have left some drivers paying £5.50 extra to fill up their cars with petrol. The hikes are largely due to tensions in the Middle East, which briefly pushed up oil prices, as well as a weakening pound against the dollar. It means the cost of filling up for some motorists is now £5.50 more expensive than in January.
In April, petrol prices were up by 2p to 149.9p, while diesel rose by 2p to 157.7p, insurance company RAC revealed. The RAC has since accused fuel retailers of increasing their prices when oil rises, while being slow to reduce them when it falls – to benefit their profits. The company also called on regulators to clamp down on a “postcode lottery” on forecourt pricing.
The RAC found a 36p difference between Asda’s cheapest garage — charging 139.7p a litre — and its most expensive, charging 175.9p. There is also a 30p gap between oil giant BP’s cheapest and most expensive forecourts, which are usually motorway services.
When wholesale costs rise, petrol prices tend to go up. When the supply decreases, wholesale prices usually increase. Those prices impact drivers buying at the pump.
The government has previously urged petrol station bosses to stop treating motorists as “cash cows” as the future of global oil prices remains unclear.
Speaking on the price hikes, Simon Williams from the RAC said: “We have long flagged the problem of some retailers inflating their margins on fuel, which has been to the severe detriment of drivers who are already having to cope with wider spiralling motoring-related costs. It’s extremely encouraging to see the Competition and Markets Authority keeping a close eye on this as it should make retailers think twice about upping their margins.”
“We have recently provided our recommendations on what the fuel price monitoring function should track to best benefit drivers every time they fill up. We now need to ensure that this once-in-a-generation opportunity of guaranteeing fairer fuel prices isn’t missed.”
Overall, the rising fuel prices are putting a strain on drivers’ wallets, with the cost of filling up significantly higher than earlier in the year. As tensions in the Middle East continue and the pound remains weak, motorists may have to brace themselves for even higher prices at the pump in the coming months.