PUMP PRICES: Fuel prices rise again for cabbies and motorists despite no significant oil cost increases, says RAC
- Perry Richardson
- 1 day ago
- 2 min read
UK motorists faced another small rise in fuel prices during September, despite no significant movement in the cost of oil, according to the latest RAC Fuel Watch data.
The average price of petrol increased by 0.77p to 135.41p per litre, while diesel rose by 0.95p to 143.14p. The change means a typical 55-litre tank now costs around £74 for petrol and £78.20 for diesel.
Fuel prices have climbed in eight of the past twelve months, but remain below their February highs. Petrol peaked at 139.65p and diesel at 146.48p on 28 February, before both fell sharply in the spring to May lows of 132.03p and 138.14p respectively.
At the end of September, supermarket forecourts continued to offer lower prices than the national average. Petrol at the major four supermarkets averaged 132.11p a litre, around 3.3p cheaper than the UK average, while diesel stood at 139.67p, 3.47p below the national figure.
The RAC highlighted that retailer profit margins remain high. The Competition and Markets Authority (CMA), in its latest road fuel market report covering June to August, noted that margins “remain far above historic levels”.
This is illustrated by comparisons with Northern Ireland, where prices are notably lower. Petrol averages 127.8p a litre, 7.6p cheaper than the UK average, while diesel costs 133.7p, 9.4p less than across the rest of the country. The RAC estimates that average retailer margin in Northern Ireland is around 4p per litre, compared with 11p across the wider UK market.
RAC head of policy Simon Williams said: “Sadly, pump prices crept up by a penny a litre in September reversing the drop drivers saw in August. The fact prices have risen at all was made worse by the fact that there was little to no movement in the price of oil, or the pound-to-dollar exchange rate – the prime determiners of fuel prices – and therefore seemingly no justifiable reason for an increase.
“It was also disappointing to have the Competition and Markets Authority confirm what we have known for some time that retailer margins remain above historic levels. We’re grateful for this level of scrutiny, but it appears yet to have had the effect on retailer behaviour we’d hoped it would. The comparison with average prices and margins in Northern Ireland makes the point that it is possible to sell fuel more cheaply and still make money.“
