Petrol stations have been instructed to promptly transfer fuel cost savings to numerous drivers who have been grappling with escalating prices at the pump due to a surge in oil prices following the Middle East conflict. Despite a decrease in oil prices from over $112 per barrel, concerns linger that motorists have not yet experienced the full relief.
According to the Competition and Markets Authority’s latest market assessment, there is no indication that retailers adjusted their pricing strategies during the crisis. The analysis suggests that the majority of the pump price increases in March and April can be attributed to higher wholesale prices.
However, the CMA also noted that fuel retailers’ profit margins remained historically high and, in some instances, had even risen slightly in April. The regulatory body is encouraging drivers to utilize a fuel finder tool to locate the most economical pump prices nearby, potentially saving an average of £9 per tank.
Sarah Cardell, the CMA’s chief executive, expressed concern over the financial strain that pump prices are putting on drivers. She emphasized the importance of closely monitoring prices and profit margins, urging retailers to swiftly pass on any reductions in wholesale prices to consumers.
Recent developments in the Middle East, including Israel’s military actions in Lebanon, have caused oil prices to climb again. This escalation has reignited fears of potential supply disruptions, with Brent crude trading at around $93 per barrel.
Petrol prices peaked at 159.53p per liter last week, a significant increase from the start of the Middle East conflict. Diesel prices, on the other hand, have decreased by nearly 8p per liter since reaching a peak in mid-April. The cost of filling a 55-liter family car with petrol is now £87.65, while diesel costs £101.06.
Simon Williams, head of policy at RAC, welcomed the drop in oil prices below $100 per barrel, indicating a positive outlook for drivers. He advised motorists to leverage tools like the myRAC app to secure the best fuel prices available.
Luke Bosdet, the AA’s spokesperson on road fuel prices, highlighted the persistent high margins for fuel retailers and emphasized the need for ongoing scrutiny by competition authorities to ensure fair pricing practices.