RAC calls for equitable petrol and diesel pricing
Fuel retailers are making a profit of 7.5p a litre on diesel compared to just 3p a litre on petrol
There is a just a penny between the wholesale price of diesel and petrol. But at the pumps, motorists running on diesel are being forced to pay extra to fill up their tanks.
Last Friday, for instance, the wholesale price of unleaded petrol stood at 103.5p a litre, while diesel was only slightly more expensive at 104p a litre. Yet motorists were charged a massive 6p extra.
Now the RAC is demanding that fuel retailers cut the extra charges or justify them.
The motoring organisation says retailers usually make around 4p per litre profit on both fuels. However they're now making a profit of 7.5p a litre on diesel compared to just 3p a litre on petrol, the RAC says. This works out as an extra £1.92 on the average 55 litre tank of diesel.
Businesses are being worst hit because, although two-thirds of Britain's 29 million cars run on petrol, vans and company cars use diesel to cover high mileages.
RAC fuel spokesman Simon Williams said: "In the last year retailers have been noticeably quicker to pass on reductions in the wholesale price to forecourts, but we are now seeing an unfortunate blip in that trend, where diesel prices are higher than they really need to be.
"There has been talk of the fuel retailers using higher diesel prices to keep petrol prices lower, but whether or not that's the case, the simplest way to operate must be to make sure retail prices always reflect wholesale prices proportionately.
"This has to be fairer in the long run for both private motorists and businesses alike."
Despite the gap, unleaded is now 4p a litre cheaper than it was a year ago, as retailers passed on savings in the wholesale price, which eased in mid-January to around 106p – a result of the pound's strong performance against the dollar.
Looking ahead, the wholesale price of diesel is likely to remain low in coming weeks due to the start of the American holiday season. The US has far more petrol vehicles than diesel and petrol production will be boosted to meet demand – causing a slight increase in petrol retail prices, which in turn narrows the gap with diesel pump prices.
Mr Williams said: "As we regularly see prices go up as a result of global demand issues it seems only fair that this annual drop in worldwide wholesale diesel prices caused by this little-known US petrol peak phenomenon should be reflected on UK forecourts.
"Over the years we have been encouraged to choose diesel vehicles for environmental and fuel economy reasons, which means they are the preferred option for many.
"Unfortunately, UK motorists now pay far more relatively for diesel than petrol because UK refineries are not geared up to meet demand and we have to import supplies from Russia and other countries.
"In the interests of fair play it would appear a good moment for our driver-friendly supermarket fuel stations or the big fuel companies to take a stand and cut the price of diesel, in line with wholesale prices, and give diesel car owners and business drivers a welcome respite."
- 1 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
George Clooney and Amal Alamuddin wedding: The famous congratulate actor and human rights lawyer after Venice nuptials
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...
£300 - £330 per day: Ashdown Group: SQL Developer (Stored Procedures) Watford...