U.K. Gasoline Retailers Not Passing on Price Drops, RAC Says
U.K. Gasoline, Diesel Prices Trend Lower After November Highs
(Bloomberg) -- Gasoline and diesel prices in the U.K. ended the year below November’s record-highs, but retailers aren’t passing on wholesale price savings to consumers, according to the nation’s main motoring organization.
The average price for gasoline dropped to 145.48 pence ($1.97) on the last day of 2021, while diesel fell to 148.92 pence ($2.02), the RAC said on Thursday. That compares to record-highs on Nov. 22 of 147.72 pence ($2.01) and 150.96 pence ($2.05) respectively.
“The government has done its part, I think it’s important that retailers pass on these reductions as well,” U.K. Transport Secretary Grant Shapps told Times Radio on Thursday.
Consumers have been hit by soaring energy costs in recent months as consumption recovers after the world emerges from the worst of the pandemic. However, drops in wholesale fuel costs in December have not yet been reflected in pump prices, according to the RAC.
Retailers are making an average of 16 pence a liter on gasoline, instead of 6 pence as usual, the group says. “The 10 pence extra retailers have added to their long-term margin of 6 pence a liter has led to petrol car drivers paying 5 million pounds ($6.8 million) more a day than they previously would have,” according to RAC fuel spokesman Simon Williams.
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