Tesco, Asda, Morrisons and Sainsbury’s fail to cut petrol prices in line with falling wholesale costs, RAC says | british news

The “big four” supermarkets and several other retailers are failing to cut gasoline prices in line with falling wholesale costs, the RAC warned.

The roadside assistance company said wholesale gasoline costs have fallen 20 cents since early June.

However, UK retailers continued to raise their prices in June and only cut their pump prices by an average of 9p in July, the company added.

The RAC said the wholesale price of unleaded – the price when the petrol arrives at service stations – is now back to its early May price of 131.75 pence per litre, leading to average pump prices of around 167 pence per litre.

However, despite the drop in wholesale costs, drivers currently pay an average of 183 pence per liter at pumps in the UK.

This means they could be paying almost £9 per tank more than they should be.

The RAC also said drivers would now have to pay around 182p per liter for diesel – nearly £6 per tank lower than the average of 192p per liter at the end of July.

Tesco, Asda, Morrisons and Sainsbury’s, known as the “big four” supermarkets, along with several other suppliers, have been criticized for failing to lower their prices in line with falling wholesale costs.

The RAC said that although several retailers cut their prices last week, the cuts are not enough to match wholesale costs.

The warning comes after fuel prices hit all-time high earlier this summer as the cost of living in the UK worsened.

RAC fuel spokesman Simon Williams said: “July was an unnecessarily tough month for drivers due to the reluctance of the four major supermarkets to lower their prices to more reasonable levels, due to the consistent and significant reductions in wholesale costs of petrol and diesel. . .

“As it was, we saw independent retailers lead the way with fairer pump prices across the country, ultimately forcing supermarkets to finally make a more substantial cut at the end of last Friday afternoon.

“What should have happened is for the largest retailers to cut their prices significantly on a daily basis as the wholesale price of gasoline has been falling steadily over the past eight weeks.”

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Mr Williams advised drivers that they should no longer assume that supermarkets are the cheapest places to get fuel.

He said motorists should shop around as it is very likely that you will find an independent retailer who does the right thing and fairly reflects their lower wholesale costs by charging a lower price.

He added: “This is really encouraging as the independents are less likely to buy new stock than the supermarkets, as they don’t sell as much, and are therefore not as well positioned as their rivals to be able to buy fuel at lower prices when there are sudden market declines.”

A Sainsbury’s spokesperson said: “We are committed to offering motorists great value for money and on weekends we have reduced the price of petrol and diesel at our service stations. We are pricing locally and competitively.”

Sky News has contacted Tesco, Asda and Morrisons for comment.

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