December 01, 2016
You’ll no doubt have noticed that fuel prices are on the rise again, approaching £1.20 per litre at some filling stations. Fuel prices are now at their highest level for over a year.
There is some respite, however, as supermarkets cut up to five pence a litre from their fuel prices, saving £4.00 when filling up an 80-litre tank. Since October, there has been a drop in the wholesale cost of oil while sterling has recently strengthened against the dollar.
The RAC was not too impressed with the price cuts as they feel that these price cuts should have come earlier given that oil and fuel costs have dropped.
Simon Williams, fuel spokesman at the RAC, said: “Retailers should have reduced their prices then rather than making one bigger headline-grabbing cut now. This will sadly undermine motorists’ trust in fuel retailers and it’s hard not to see it as them taking advantage of the current climate, which has led people to think that higher fuel prices are an inevitability simply because of the weaker pound and talk of the rising cost of goods. In fact there is still scope to reduce pump prices further.”
The cuts came after 50 MPs collectively called for fuel duty to be cut in this year’s Autumn statement. The group, which included six government ministers, wrote to Chancellor Philip Hammond to express their concern that both customers and business owners were still being ripped off at fuelling stations.
Others have called for the duty to be frozen following the market’s volatility after the Brexit vote back in June.
The supermarkets themselves have all issued statements peddling similar lines; “festive season around the corner…savings passed on to customers…pound has strengthened”.
Meanwhile the AA has advised that the cuts may be short-lived: “Yo-yo oil prices mean that we may see costs reverse yet again.” If you need to fill up, now is probably a good time.