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

By Tom Gibson | July 5, 2022


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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.'

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