It’s a debate that has raged since the end of the COVID pandemic but, despite regulatory scrutiny, it’s fair to say there’s been no clear answer to accusations that UK drivers pay over the odds for fuel.
What was once a promotional loss leader for supermarkets desperate for drivers to fill their car boots with groceries, unleaded and diesel costs have been unusually high for years.
Fuel retailers say there is a simple explanation: rising costs being passed on to motorists.
But critics argue there is a reason why the Competition and Markets Authority (CMA) has consistently found that we’re paying more than we should be – and that the disparity between wholesale costs and pump prices has got worse in recent months.
So: who’s right?
What the oil data tells us
Oil prices are well down on levels seen in January (between $75 and $82 a barrel) but fuel prices are clearly not.
In recent weeks, Brent crude has traded in the range of $62 to $64 per barrel and yet drivers are currently, on average, paying £1.37 a litre for petrol and £1.46 for diesel.
The average pumps costs in January stood at £1.39 and £1.45 – despite the significantly higher oil costs seen at the time.
Prices can be affected by all sorts of factors including the value of the pound versus the oil-priced dollar, but that disparity is notable.
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There is another, emerging, factor to consider
It might surprise you to learn that the UK now has only four operational refineries to produce petrol and diesel after two major sites shut this year.
The decline has sparked an industry warning of a crisis due to high UK carbon charges, imposed by the government, that have made domestic fuel producers…
