The All Party Parliamentary Group for Fair Fuel for Motorists and Hauliers have written to fuel supply chain businesses to ask why fuel prices were so high when the cost of living continues to rise. According to the RAC Foundation and FairFuelUK’s national panel, average profit margins for diesel have increased by 150 percent in the last 2 years, with petrol margins more than doubling.
In December 2021, FairFuelUK reported that pump prices were 30p per litre more expensive than the previous year, yet the wholesale costs of petrol and diesel were up, just 18p.
The letter states: “The RAC supports FairFuelUK analysis that even allowing for market increases in margins and distribution costs, the world’s highest taxed drivers in the UK were paying up to 10p per litre more than needed in recent months.
“As a direct result of this, we would like to understand why fuel supply chain profits have increased so considerably in the last two years, and why wholesale falls in fuel costs are not fully reflected in retail prices?”
According to the RAC Foundation, current fuel prices remain at record levels with a litre of petrol setting drivers back 148.65p, while diesel drivers face a cost of 152.16p per litre.
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“Soaring fuel prices do not just impact motorists at the pump, but transport costs, public service bills and most worryingly, inflation as a whole.
“Our economy is facing levels of inflation that we have not seen in decades and these excessive price grabs only force that up further.
“We need a Pumpwatch monitor now to stop greedy oil companies taking motorists for a ride and to ensure fair prices at the pumps for hard working people across the country.”
With the high fuel costs, the AA reported a tank of unleaded petrol costs nearly £15 more than it did this time last year.
There are further fears that prices could continue to increase in the coming weeks given the uncertainty between Ukraine and Russia.
Many industry experts have pointed to the conflict as one of the main reasons why the global price of oil has exceeded $100 (£73.37).
Howard Cox, Founder of FairFuelUK and Secretary to the FairFuel APPG, said: “FairFuelUK estimates that the Treasury is wallowing in an extra £2billion VAT bonanza because of the eye watering pump prices.
“That is equivalent to 6p in a potential cut of fuel duty, without impacting on the normal gross fuel taxation of motorists to the Exchequer.
“A cut in the fuel levy for the world’s highest taxed drivers is morally the right thing to do.
“Pump pricing greed has been allowed to be rife for a generation.
“It’s time the Government implemented PumpWatch, initiated a CMA investigation into greedy fuel supply chain profiteering and cut fuel duty too.
“Why the hell are they not doing at least one of these actions, all called for by millions of drivers and voters?”