Diesel drivers are now paying 19p per mile to use the roads, a 4p increase from earlier this year, as fuel prices have surged in the wake of the Iran war. On January 2, the average pump price of diesel stood at 144.18p per litre, meaning drivers were paying 15p per mile at that time. By July, diesel costs had risen to 178.97p per litre, pushing the per-mile cost up to 19p.
RAC calls for action on retailer pricing
Speaking last week, RAC head of policy Simon Williams said: "It's very concerning that margins on fuel remain historically high, competition is still lacking and that some retailers were deemed not to have reduced prices as quickly as they should have when the diesel wholesale price fell earlier in the summer."
Williams welcomed the Competition and Markets Authority's (CMA) decision to examine retailer pricing strategies. "We're therefore pleased the CMA is going to be taking a closer look at retailer pricing strategies and whether wholesale price changes are reflected at the pumps fast enough," he said.
Regional price disparities highlighted
The RAC also urged the watchdog to compare fuel retailing in Northern Ireland with the rest of the UK. "Petrol and diesel are currently being sold there for an average of 8p less a litre – meaning the cost of filling a family car in Northern Ireland is around £4.40 less than elsewhere. If fuel can be sold there at lower prices, then it seems drivers elsewhere aren't being treated fairly," Williams added.
Williams pointed to the availability of price comparison tools as a positive development. "It's positive that drivers can now find prices for 99% of fuel sold in the UK on Fuel Finder. We urge every driver to use fuel comparison tools such as the myRAC app to make sure they buy the cheapest fuel near them," he said.
Recent price trends and outlook
Williams also provided an update on recent price movements. "Drivers will be relieved to know that the fuel price rises of recent weeks appear to be slowing down and should hopefully top out over the weekend," he said. "Since 6 July the average price of petrol has gone up 11p a litre adding £6 to the cost of a full tank (£89)."
Diesel has seen even sharper increases. "Diesel has been even harder hit, going up 17p a litre since 9 July which has made a fill-up up nearly £10 more expensive at £100," Williams said.
Crude oil has fallen under $100 to $80, which the RAC said should lead to savings at the forecourt. The RAC's comments come as drivers also face a UK number plate change from September 1, with those failing to comply risking a £1,000 fine.
