The price of oil has dropped from a peak of more than $112 (£83) a barrel but therte are concerns motorists have yet to feel the full benefit of this change
Petrol stations have been told to “rapidly” pass on fuel savings to millions of long-suffering motorists.
Drivers have been hammered by the soaring cost of filling-up since the Middle East conflict sent oil prices surging. But while oil has dropped form a peak of more than $112 a barrel, there are concerns motorists have yet to feel the full benefit.
The Competition and Markets Authority, publishing its latest monitoring of the market, says it had found “no evidence that retailers altered their pricing strategies to take advantage of the crisis.” Its analysis suggested that higher wholesale prices continue to explain “most” of the increase in pump prices in March and into April.
However, the CMA also found forecourt owners’ profit margins on fuel remained “at historically high levels” and, in a number of cases had increased slightly in April.
The regulator is urging motorists to use the fuel finder tool to pinpoint the cheapest pump prices near them, saying it could save an average £9 a tank.
Sarah Cardell, chief executive of the CMA, said: “We know prices at the pump are putting real pressure on drivers’ pockets.
“While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more.“Retailers should be in no doubt that we are continuing to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.”
Oil prices rose on Monday after Israel ordered troops to push deeper into Lebanon, renewing concerns that clashes with the Iran-backed Hezbollah group could threaten a fragile ceasefire between Washington and Tehran. Brent crude traded around $93 a barrel before the latest escalation in the Middle East and has previously in this crisis surged above $112 as traders priced in the growing risk of supply disruptions.
Petrol prices peaked at 159.53p a litre late last week, according to latest figures from the RAC, around 26p higher than at the start of the Middle East war in late February. The average price of diesel has fallen by nearly 8p a litre to 183.75p since peaking on April 15 at 191.54p.
A tank of petrol for a 55-litre family car currently costs £87.65 – £14.60 more than in late February. For diesel it is £101.06 – £22.75 more than it was at the start of the Iran war.
RAC head of policy Simon Williams said: “The price of oil has now been under $100 a barrel for almost a week which is another positive sign for drivers and potentially a test for retailers as it should lead to lower forecourt prices.
“In the meantime, we continue to urge drivers to use tools like the free myRAC app to ensure they pay the lowest possible prices every time they fill up.”
Luke Bosdet, the AA’s spokesman on road fuel prices. said: “While retailers appear not to have altered their pricing strategies to take advantage of the Middle East crisis the historically high fuel margins underline why the competition watchdog needs to be probing pricing behaviour at the pumps.”
