My Garage
New hero

Supermarkets lose 'appetite' to cut fuel prices despite wholesale cost decreases

By Tom Gibson | July 5, 2022


Why not leave a comment?

See all | Add a comment

Supermarkets are pocketing the difference as wholesale petrol prices falls with RAC and others criticising their greed

Supermarkets lose 'appetite' to cut fuel prices despite wholesale cost decreases

Both the RAC and AA have hammered the big four supermarkets for not cutting fuel costs despite wholesale reductions.

After Experian released data to show their wholesale savings have not been passed onto forecourt customers, RAC fuel spokesman, Simon Williams, said the ongoing rise in cost of petrol demonstrates 'the biggest retailers' resistance to reduce their pump prices in line with the lower wholesale cost of unleaded'.

He added: 'Rather than passing on some of the savings they are benefiting from, they are clearly banking on the wholesale market moving up again which is disappointing for drivers who are desperate to see an end to ever-rising prices.

'Sadly, there no longer seems to be any appetite among the big four supermarkets to drive customers into their stores with lower pump prices.

We question whether we will ever see much competition between supermarkets over fuel again, let alone a so-called 'price war'.'

As part of this fuel price debate, fuel retailers have been rightfully hammered for rocket and feather pricing – the concept where when wholesale costs rise, consumer costs rocket, and then when wholesale costs fall, consumers costs edge down slowly.

We’re left scratching our heads thinking the concept of ‘rocket and feather’ criticism could only be viewed as a complement by retailers given our costs aren’t falling at all…

Jack Cousens, head of roads policy at the AA, said: 'With Wimbledon well under way, drivers may be forgiven for borrowing the iconic rant from John McEnroe as they pull up to the pump - 'You cannot be serious!'.

'However, with some reports of aggressive behaviour towards forecourt staff, we urge people to channel the zen-like mentality of Roger Federer when refuelling and not abuse staff.

'It is not their fault, which is why the AA is directly challenging the Government, retailers and the Competition and Markets Authority (CMA) to find a quick and effective solution.'

Related Articles

Some small retailers cut fuel costs but most greedy supermarkets still overcharge by £9 per tank
Data from the RAC has shown pump prices are still miles higher than wholesale prices
Aug 08, 2022
Did you know there’s a motorway in the UK that we can almost guarantee you wouldn’t have used?
It’s just 400m long and located in Gloucestershire
Aug 01, 2022
The first of the big four supermarkets finally cuts petrol and diesel prices to 'help motorists save money'
One of the supermarkets has finally woken up and decided to offer at least some relief to the UK’s motorists, weeks after wholesale prices...
Aug 01, 2022
Red Bull slams VSC for ‘interfering with the result’ in France
The irony of such an instance seems to be completely lost on Red Bull following events in Abu Dhabi last year
Jul 25, 2022