How Much Are UK Drivers Really Overpaying? It’s in the region of billions each year
Fuel Price Rip-Off in action! It’s a fact, UK drivers are really overpaying. Tell us how much per litre you pay for fuel in the comments. Do you flinch every time you pull into a petrol station? Is filling up agony as you see the cost racing up on the dial? You’re thinking it is ridiculously expensive. And you’re not wrong! In this video I reveal the shocking reality of fuel prices in the UK and the huge profit margins oil companies are taking while leaving us out of pocket during a cost-of-living crisis! Despite a drop in oil prices, fuel retailers continue to inflate their profit margins. Are you paying more than you should for fuel? Watch now to find out!
Fuel prices in the UK have reached outrageous levels, leaving many drivers wondering just how much they are overpaying. A recent report highlights the extent to which fuel companies are overcharging consumers, and it’s a situation that needs urgent attention.
The Current Situation: Overcharging at the Pumps
According to a new story from Auto Express, the RAC has revealed that fuel retailers are making excessive profits on diesel. The profit margin on a litre of diesel is currently about 18p, which is double the long-term average of 8p per litre. This means retailers are making an extra 10p per litre at the expense of consumers who are already struggling with the cost of living crisis.
Wholesale Prices vs Retail Prices
Despite recent reductions in wholesale fuel prices, these savings are not being passed on to motorists. The price of a barrel of oil fell from $90 to $83, yet we haven’t seen a corresponding drop at the pumps. The RAC has called on the UK Energy Secretary, Claire Coutinho, to take action against this unfair practice.
The government had proposed a “Pump Watch” scheme to enforce transparency, requiring retailers to share live price data online. However, this has yet to be implemented effectively.
How Much Should We Be Paying?
RAC Fuel Watch reports that the average price of petrol is currently around £1.50 per litre, and diesel is £1.57. However, if the savings from lower wholesale prices were passed on, we should be paying about £1.45 per litre for both petrol and diesel.
Supermarkets Also at Fault
Even supermarkets, known for their relatively cheaper fuel prices, are refusing to cut prices despite lower wholesale costs. The big four supermarkets dominate fuel sales, and their reluctance to lower prices means other retailers have little incentive to do so.
According to Simon Williams from RAC Fuel Watch, the high margins are exacerbating inflation. He explains that when wholesale prices rise, retail prices at the pump increase almost immediately. However, when wholesale prices fall, these savings are rarely passed on to consumers.
“a 10p margin per litre on the 120 million litres of fuel sold daily in the UK equates to £12 million per day, or £4.4 billion per year. If this margin is increased to 15p, it results in £18 million per day, or £6.6 billion per year”
The Bigger Picture: EVs and Fuel Demand
One argument from fuel retailers is that the rise of electric vehicles (EVs) is reducing fuel sales, leading them to increase prices to maintain profits. However, this claim doesn’t hold much water. The UK has about 40 million vehicles, but only around 1 million are electric. That’s just 1 in 40, meaning the vast majority of vehicles still rely on petrol and diesel.
Fuel retailers seem to be using the rise of EVs as a convenient excuse to overcharge. Considering the massive profits they are already making, there is no justification for these inflated prices.
The Financial Impact
The difference of a few pennies per litre might not seem like much, but it adds up to staggering amounts over time. For instance, a 10p margin per litre on the 120 million litres of fuel sold daily in the UK equates to £12 million per day, or £4.4 billion per year. If this margin is increased to 15p, it results in £18 million per day, or £6.6 billion per year. These figures highlight just how much consumers are being overcharged.
Conclusion: Time for Fair Pricing
UK motorists are being hit from all sides with high fuel prices, emission charges, taxes, and rising insurance costs. This relentless pressure is making driving unaffordable for many. A recent survey revealed that 15% of motorists are considering giving up driving due to the high costs.
Fuel companies need to reconsider their pricing strategies and offer fairer prices to consumers. With so many drivers feeling the pinch, it’s time for transparency and fairness at the pumps.
What do you think about the current fuel prices? Are you feeling the pinch? Share your thoughts in the comments below, and don’t forget to like, share, and subscribe for more motoring insights. Drive safe and stay informed!
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