‘Profiteering!’ Petrol prices ’14p higher than necessary’ as companies savaged

Undersupply of oil in the global market had already been an issue since last year, however tensions with Russia have pushed it into new heights with oil breaking past the $100 per barrel threshold, and then on to $110, since the situation escalated. The spike in prices is set to add to the misery for drivers with the RAC warning on Thursday that prices had already risen by 4.5p in February, based on latest data. According to the motoring group, February saw the fastest monthly increase since October, when prices rose 7.5p, with the average price for a litre of unleaded at 151.16p for the month. Campaign group FairFuelUK have criticised the price hikes, accusing petrol firms of profiteering.

According to the group, motorists are paying 8p a litre more than necessary based on the difference between pump prices and oil prices, which rises to 14p when fuel duty and VAT are included.

These claims were based on comparing the difference in pump prices to oil prices in 2014 with the present day and adjusting for the changing exchange rate between the pound and the dollar.

Howard Cox, Founder of FairFuelUK, said: “Why is Rishi Sunak, and he knows this full well, not acting to check the uncontrolled profiteering that is damaging the economy, the highest taxed drivers in the world and fuelling inflation.”

The group has advocated for an independent petrol price watchdog to monitor the industry, dubbed PumpWatch, which has been supported by MPs such as Craig Mackinlay and Robert Halfon.

Prices have also varied around the UK with drivers in the North East and Northern Ireland still seeing prices below 150p a litre.

Meanwhile drivers in the South East have seen the highest costs at 152.18p, followed by London at 151.79p a litre.

RAC fuel spokesman Simon Williams commented: “February was undoubtedly a shocking month for drivers.

“A rise of 4.5p in any month is bad enough but when it takes pump prices to record levels, it’s bound to hurt households across the UK.”

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According to the RAC’s analysis retailers’ margins were “dramatically inflated” at the end of 2021 but were now back to normal levels.

Like FairFuelUK though, the group backs cuts to taxes to ease the burden on drivers- calling on the Treasury to look at an emergency cut in VAT.

Such a move has also attracted support from the Petrol Retailers Association.

The group however insisted that rising fuel prices were putting pressure on retailer margins, adding that “pump price increases are necessary to ensure that forecourt operators can continue serving their customers.”