Motorists across the United Kingdom have been issued a stark warning about a "wild" problem sweeping the nation's forecourts, as petrol stations charge dramatically different prices for fuel, creating a significant postcode lottery for drivers.
The Postcode Lottery in Fuel Pricing
Recent figures from the AA, the UK's leading motoring group, highlight the extent of this disparity. For instance, earlier this week in Horsham, Sussex, drivers could pay anywhere between 136.9p and 140.9p per litre for petrol, depending on which forecourt they visited. This variation means that motorists in the same area are facing inconsistent costs simply based on their choice of petrol station.
Expert Insights on the Issue
Luke Bosdet, the AA's spokesperson on fuel pricing, has emphasised the challenge for consumers. He stated, "The pump-price postcode lottery between neighbouring towns and communities, and the difficulty in locating bargain-priced fuel." This sentiment is echoed by industry experts who point to broader economic factors influencing these costs.
Simon Williams, the head of policy at the RAC, explains that the cost for UK road users is influenced by "the oil price and the exchange rate", which can lead to fluctuations. However, the core issue remains the lack of transparency and competition at the local level.
Calls for Stronger Competition and Transparency
Dan Turnbull, the senior director of markets at the Competition and Markets Authority (CMA), argues that drivers could benefit from lower prices if competition between businesses was more robust. He highlights a key problem: "The main issue is that motorists can’t easily compare a wide range of prices in real time."
To address this, initiatives like the fuel-finder scheme are being promoted. Turnbull adds, "That’s why the fuel-finder scheme matters – it will make it easier to shop around and encourage petrol stations to compete harder for business. This could help reduce the disparities between neighbouring petrol stations and towns that we currently see."
Monitoring and Fair Pricing Efforts
In response to these concerns, the RAC has launched Fuel Watch, a petrol and diesel price monitoring initiative designed to ensure retailers charge a fair price across all UK forecourts. This programme will monitor wholesale prices – what retailers pay – and pump prices on a daily basis.
It covers major supermarkets such as Asda, Costco, Tesco, Sainsbury's, and Morrisons, along with many other brands. The RAC states, "And, when wholesale prices dip, we call on retailers to pass on the savings they are benefiting from to drivers at the pumps."
Industry Response and Consumer Advice
The Petrol Retailers Association has defended its members, asserting that they are pricing fuel "competitively and fairly". The association notes, "The range of fuel prices shows that competition is working and to help motorists find the best deals in their area, we encourage them to download the free PetrolPrices.com app."
This advice underscores the growing need for drivers to take proactive steps in navigating the complex fuel market. By using such tools, motorists can better compare prices and potentially save money, mitigating the effects of the postcode lottery.
As this issue continues to affect millions of UK drivers, the call for greater transparency and enhanced competition remains a pressing concern for both consumers and regulatory bodies.
