Big retailers failing to pass fuel prices cuts on to motorists

Major retailers are failing to reduce petrol prices in line with falling wholesale costs, the RAC has warned.

The roadside recovery firm said wholesale cost of unleaded – the price when it arrives at forecourts – is now back down to its early May price of 131.75p per litre, which saw average pump prices of around 167p per litre.

But drivers are currently paying an average of 183p per litre at pumps despite the drop in wholesale costs, the RAC said.

It comes after fuel prices hit their highest-ever levels earlier this summer as the cost-of-living crisis began to bite.

The wholesale cost of petrol has fallen by 20p since early June, according to the RAC.

Yet retailers continued to increase their prices in June and only dropped their pump prices by an average of 9p during July, the firm said.

This means drivers filling up at the end of July average of 183p per litre could be paying almost £9 a tank more than they should be.