Petrol prices fall – but remain ‘unfairly’ high

Richard Aucock, Contributor
Tue, 09 Jan 2024

Petrol prices fell by 6p a litre in December 2023 – but despite it being the second consecutive months of reductions, fuel price remain too high.

The RAC blames the big four supermarkets, which it says are greedily taking unfairly large margins.

Indeed, in December 2023, the average supermarket margin on a litre of fuel was 13p, more than double the margin back in 2021.  

At an average of 146.7p a litre, unleaded has fallen back to prices last seen in February 2022, prior to Russia’s invasion of Ukraine. Diesel has dropped 5p a litre to 149.2p.

But prices in Northern Ireland are far cheaper still, with unleaded selling for an average of just 135.3p a litre. Diesel prices average 144.2p a litre.

Average fuel prices in Northern Ireland currently undercut supermarket prices in Great Britain, which average 137.6p a litre for unleaded, and 145.9p for diesel.

Even an independent garage – Grindley Brook in Whitchurch, Shropshire – is now significantly undercutting the big four supermarkets. It charges 130.9p a litre for unleaded and 139.9p for diesel.

"If an independent retailer in the middle of Shropshire can be undercutting the supermarkets by around 6p a litre, something has to be very badly wrong," says RAC fuel spokesman Simon Williams.

"It’s surely impossible to argue that competition is working properly if prices are so vastly different."

The RAC says it is continuing to call on the biggest retailers to play fair with drivers and lower their prices. It is also urging energy security secretary Claire Coutinho - who is on a mission to bring greater transparency to fuel pricing following the Competition and Markets Authority’s investigation concluding drivers were overcharged to the tune of £900m in 2022 - to ask the supermarkets why they won’t charge similar prices to the averages seen across Northern Ireland.

The RAC believes supermarkets should be charging around 132p a litre for unleaded, not 137.6p a litre. However, it added, "in spite of the current overcharging, we strongly hope that 2024 will be the year when drivers finally get to see fairer pump prices".

Ask HJ

I only do 5000 miles a year - should I buy a petrol, diesel or hybrid?

I am looking to buy a new car. I only do about 5000 miles a year. I need a car with a decent size boot. Should I buy a petrol, diesel or hybrid? I have no interest in an electric car as I have no way of plugging it in as I live in a flat. Can you recommend a car with good economy and reliability no more than £30,000?

As you can't charge a car at home, we'd recommend a petrol or hybrid for your mileage. A Suzuki Swace (or almost identical Toyota Corolla Touring Sports) sounds ideal - it's a very efficient estate car that's likely to be extremely reliable in the long term. You could also look at SUVs like the Kia Sportage - a nearly-new mild-hybrid Sportage is available within budget.

Answered by Andrew Brady

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