Pump prices climb as greedy suppliers cash in

PETROL and diesel prices are creeping up and are just 1.5p a litre short of their all-time highs.

On Thursday average unleaded prices hit 146.27p a litre and diesel 149.58p. Average pump prices are near the records of 147.72p a litre and 151.10p set in November.

Between then and this week average pump prices fell just 2p a litre despite wholesale costs slumping by up to 10p.

It sparked fresh accusations that retailers have been ruthlessly fleecing motorists by not passing on more of the savings.

The AA’s fuel supremo, Luke Bosdet, said: ‘Record petrol prices were generated by wholesale costs above 54p a litre. Even this week, costs are still 2p below that.

‘Yet, what UK drivers are paying for petrol now is 1.5p shy of those record prices.

‘The fuel trade, having got away with bloated margins over two years, is pumping more profit out of them.’ He said diminishing competition from supermarket forecourts, traditionally much cheaper, was partly to blame for inflated prices. An AA analysis found that Morrisons supermarket petrol in one town, Market Drayton in Shropshire, was 8p a litre costlier than at a nearby non-supermarket Esso forecourt.

The RAC’s fuel spokesman, Simon Williams, said: ‘The scandal of over-inflated fuel prices continues. December saw drivers paying 10p a litre more than they should have purely because retailers hiked their margins to a shocking 16p a litre.

‘And now the average price of unleaded has started to go up again, even though forecourt prices are still 5p a litre too expensive.’

Average pump prices are set to surge further in the coming weeks amid rising global oil prices, with a barrel of Brent Crude now more than $90 – the first time it has passed this milestone in seven years.

But Mr Williams added: ‘This shouldn’t lead to the average price of petrol going up as the biggest retailers have plenty of room to absorb it due to excessive margins.’

Howard Cox, of the FairFuelUK campaign group, called for an official watchdog. He said: ‘It’s time for an independent regulator to protect drivers.’