As costs climb, gas stations are ‘taking advantage’ to ‘make up for lost sales’ due to the pandemic.
According to RAC study, fuel merchants are “taking advantage of drivers” by raising prices to “make up for decreased fuel sales” during the pandemic.
They warn that fuel prices “shouldn’t be continuing to grow” after rising for the seventh month in a row in May. Instead, they advise that petrol prices should be cut by much to 4p per litre since they do not “fairly reflect” global oil costs.
Companies are utilizing a drop in wholesale oil prices to make up for lost revenue last year, according to RAC fuel spokesman Simon Williams.
“As always, the future of fuel prices is difficult to anticipate more than a few weeks ahead of time, and this is especially true now that the epidemic looks to have changed the dynamics of fuel retailing, with supermarkets having an even larger monopoly on the market,” he said.
“Looking at the wholesale prices of both fuels, unleaded shouldn’t be continuing to grow under normal circumstances, with the data actually pointing to a 2p reduction.
“Diesel is currently 4p too expensive, implying that retailers are utilizing the wholesale price reduction to offset weaker gasoline sales in the previous year.
“We urge merchants not to take advantage of motorists and to reflect wholesale pricing on the country’s forecourts properly.
“The fate of drivers’ fuel prices is determined by global oil production and demand.
“Oil manufacturers reduced production owing to decreasing demand, but as travel recovers, they are releasing more product.”
According to RAC Fuel Watch, petrol prices are now more than 22p per litre more than a year ago.
This was the largest 12-month growth in eleven years, according to the expert.
At the end of May, petrol prices had risen by 2p per litre to 129.27p.
As traffic levels began to decline during the early stages of the pandemic, unleaded prices fell to just about 106p per gallon in May 2020.
Petrol prices, on the other hand, are currently a few cents more than they were before the pandemic began.
Due to the price hikes, vehicles will now pay roughly £71.10 to fill up a 55-litre tank.
Meanwhile, average diesel prices have risen by 1.95p to 131.59 pence, with a full tank costing roughly £72.37.
Mr Williams cautioned that this is the eighth month in a row that the price has risen. “Brinkwire News in Condensed Form.”