Drivers being overcharged for diesel despite wholesale price drop

David Ross, Editor
Fri, 05 May 2023

Drivers of diesel vehicles are being overcharged by 16p a litre according to the RAC. Diesel was actually 6p a litre cheaper than petrol on the wholesale market, yet retailers are failing to pass on the savings.

Indeed, the average price of a litre of diesel across UK forecourts was 159.43p in April, with petrol remaining unchanged at 146.5p. The RAC is suggesting drivers should only pay a maximum of 143p per litre for diesel.

Simon Williams, fuel spokesman for the RAC, stated that diesel drivers across the UK mainland continue to lose out badly at the pumps.

"They’re paying 13p a litre more for the fuel than petrol, despite diesel being cheaper for retailers to buy on the wholesale market for all of April. This just isn’t fair for the country’s 12m diesel car drivers."

"We feel there should be an obligation on retailers to reflect wholesale price movements on their forecourts. Sadly, the only place this seems to happen is in Northern Ireland where a litre of diesel is, incredibly, being sold for 12p less than the UK-wide average," he added.

Williams also highlighted that the average retailer margin on a litre of diesel is 22p, compared to around 8p for petrol.

Long-term averages for both fuels are 7p, meaning that retailers are currently making three times as much for diesel as they have in the past.

The RAC is calling for government action to prevent drivers from being ripped off, although it has stated it is not in favour of prices being capped. Instead, Williams suggested there should be an obligation on the biggest retailers to charge fairer prices in relation to wholesale market movements.

The cost of filling a 55-litre family car with petrol currently stands at £80.60, while the diesel equivalent is £87.69.

If diesel was sold at the fairer price of 143p, the RAC says it would save drivers £9 per tank. At the end of April, the average price of unleaded at one of the big four UK supermarkets was 142.99p, which is 3.5p cheaper than the UK average. Diesel was 2.75p cheaper than the average at 156.68p, down 3p since the start of the month.

"We realise retailers need to make a profit but a margin of 22p on every litre of diesel can only be seen as outrageous and a slap in the face to those who depend on it, whether they’re consumers or businesses," said Williams.

Ask HJ

Why am I suddenly getting poor economy from my car?

I recently purchased a 2004 Mondeo 2.0 LX auto, 175000 miles, and am only getting 22-24mpg around town when I was expecting 30mpg. The owner's manual suggests a range of 395 miles; I'm getting barely 300 miles. I have changed the oil and all the filters, plus spark plugs. Tyres have good tread, wearing evenly, and are at correct pressures. I am using premium petrol, only. The engine runs very well, with no hesitation under load. No leaks, or petrol smells noted. What do you suggest I try next?

Fuel consumption has a huge number of variables that can affect the outcome, and particularly with an older car, even if it is kept in immaculate condition the years of service can take their toll on how a vehicle performs. Looking at the official fuel consumption figures for your car, the urban figure is 22.4mpg - which is exactly what you appear to be getting - while the combined figure is 31.0mpg, which incorporates some higher speed driving. We suggest you reset the trip meter and take the car on a steady 30 minute drive on a dual carriageway or motorway. If it returns a figure of over 30mpg for this journey it would suggest there is no problem. It's worth remembering that the Mondeo is quite a large car, a 20-year-old design and has a naturally-aspirated engine with a torque converter gearbox, so even if it were brand new it would still be a relatively thirsty machine.

Answered by David Ross

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