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Motoring news

Questions over supermarket petrol price rises

18/09/2008

While average UK fuel prices have dropped over the past month, prices on some supermarket forecourts appear to have risen.

The AA's September Fuel Price Report found that the average price of petrol fell by 0.27p per litre, and diesel fell by 1.32p.

However, Asda and Tesco brand petrol rose by +0.08p and +0.69p respectively, while diesel at Morrisons and Tesco increased by +0.85p and +0.69p.

Some of the biggest price cuts were made by Murco, which slashed petrol prices by 1.43p and the price of diesel by 2.9p.

AA president Edmund King complained: "The country has already had a taste of falling wholesale prices not being passed on quickly enough to beleaguered UK consumers this summer."

But Ray Holloway, director of the RMI Petrol Retailers Association (PRA) responded by saying that although prices for crude oil and forecourt fuel are linked, they should not be expected to move in tandem.

"While the price of oil has fallen, the wholesale price of petrol that retailers pay for petrol has remained static," he said.

"Between 1 August and 12 September, the price of a barrel of crude oil fell by 20.1 per cent from $122.50 to $97.90. In the same period the cost of petrol supplied to retailers did not change."

Both groups expect more significant fuel price cuts in the coming weeks. The AA predicts a drop of four pence per litre for petrol and six pence for diesel.