Gas prices: RAC warns drivers of being overcharged at the pump

Drivers are still getting a ‘raw deal’ at the pump, paying around 9p a liter despite a record drop in prices last month, according to new analysis.

The RAC said average petrol prices fell to 169.8p per liter at the end of August but are expected to be around 161p due to current wholesale costs.

In August, average prices fell by 12.3 pence per litre, the biggest monthly fall in 22 years.

However, prices are still expected to fall further.

RAC spokesman Rod Dennis said: “Twelve pence a liter is a lot to bring prices down in a single month, so there’s no doubt things could be worse, but in reality the gasoline-powered vehicle drivers still invariably get a rough deal at the pump.

“For whatever reason, major retailers are choosing not to fully pass on the wholesale lead-free price reductions they have enjoyed for a considerable time.

“There are very good reasons for the biggest fuel sellers to further reduce their gas prices on the forecourt.

“Taking into account a generous margin of 10 pence a litre, we should see petrol selling for around 161 pence a litre.

“Some big supermarket sites come close to charging this – but there is a veritable postcode lottery, with prices varying wildly depending on where a driver is in the country.

“Drivers should seek out the best possible deal, and we applaud independent retailers who are doing their best to charge a fairer price for fuel and support their local communities during this incredibly expensive time.”

A review by the Competition and Markets Authority found that growing oil refining margins were a major cause of the fuel price spike earlier this year.

The increase in the price of crude oil as it enters refineries at the wholesale price when it exits as petrol or diesel has more than tripled in 12 months to almost 35 pence a litre, said the competition regulator.

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