Fuel prices remain stable in July, but are still being significantly overcharged for filling up

RAC Fuel Watch data indicates petrol and diesel prices in July remained largely unchanged at 145p (144.76p) and 150p (149.8p) per litre respectively.

Wholesale prices suggested a reduction at the pumps, yet drivers continue to pay an average of 5p more per litre for petrol and 8p more for diesel than necessary. This overcharging translates to nearly £3 (£2.75) extra per petrol tank and £4.40 for diesel.

A revealing report by the Competition and Markets Authority (CMA), fuel retailers have overcharged UK drivers by £1.6bn in 2023.

The RAC's analysis shows average retailer margins have risen to 13p per litre for unleaded petrol, up 3p in July, and 14.5p for diesel. These margins are significantly higher than the long-term average of 8p per litre, implying drivers should be paying around 140p for unleaded and 142p for diesel.

In contrast, Northern Ireland offers a fairer deal, with petrol averaging 140p (139.7p) and diesel 142p (141.6p) per litre, due to retailers maintaining an 8p margin. A full tank of petrol for a 55-litre car costs nearly £80 (£79.62) in the UK, compared to £77 in Northern Ireland. For diesel, the cost is £82 (£82.39) in the UK versus £78 (£77.88) in Northern Ireland.

Supermarket fuel prices show a litre of unleaded petrol averaging 142p and diesel 147p across 1,664 forecourts operated by the four major brands, 3p below the UK averages. However, significant price variations exist within brands. At Asda, petrol prices off motorways vary by up to 18p per litre, the highest among supermarkets. Tesco forecourts show the smallest difference at 7p per litre.

For diesel, Asda's off-motorway prices vary by 21p per litre, while other supermarkets have a difference of about 13p.

The RAC found that Asda, with 665 forecourts, provided pump prices to the CMA’s voluntary data scheme only 12 days in July, giving it the poorest compliance among 14 retailers. Other supermarkets and major brands like BP, Shell, and the Motor Fuel Group, which operates 1,200 sites, submitted data daily. Ascona Group and SGN, operating 61 and 102 forecourts respectively, also failed to provide data every day, reporting 25 and 22 times in July.

RAC head of policy Simon Williams said: “It’s disappointing to see fuel prices remain far higher than they should be, especially after the Competition and Markets Authority (CMA) announced at the end of July that drivers were overcharged by an astonishing £1.6bn last year.

“With our analysis clearly showing margins are still significantly above the long-term average, it seems like nothing has changed and drivers continue to lose out despite all the ongoing scrutiny from the CMA and the Government.

“Coupled with this, the wholesale fuel market is trending lower due to the price of oil falling by $6 to around $80 at the end of July. This in itself ought to lead to lower prices at the pumps but, as the CMA made clear in its report, competition in fuel retailing is extremely weak. As a result, we sadly can’t see pump prices reducing much further without retailers’ acting on what the CMA is saying and finally introducing some much-needed fairer pricing strategies.

“It must be incredibly galling for drivers to see the UK average price of petrol stubbornly static at 145p when the wholesale cost merits lower pump prices – something clearly demonstrated by the fact those in Northern Ireland are paying 5p less. For diesel, things are even worse as the price difference is 8p.

“The introduction of the Government’s Pumpwatch scheme can’t come soon enough, and neither can the setting up of the official price monitoring body, so long as the latter has the power to clamp down on retailers who consistently overcharge.”