Pump prices for motorists have remained relatively stable despite a significant drop in wholesale prices, as reported by the AA. The motoring organization disclosed that the wholesale price of petrol has fallen to levels last seen in 2021 before the conflict between Russia and Ukraine, which led to a surge in prices. This drop in wholesale prices, influenced by declining oil prices and potential peace talks between the nations, has not been fully reflected at the pump.
According to the AA, the cost of petrol for garages started decreasing in November, resulting in a reduction of over 7p per liter by the end of the week. However, drivers have not yet experienced significant savings, with the average pump price of petrol hardly budging during the same period. Diesel prices have also seen a minor decline compared to wholesale costs, with only a slight decrease from 146.9p to 146.6p per liter.
As many motorists prepare for the upcoming holiday travel season, the AA’s findings suggest that drivers may miss out on potential savings at the fuel pump. While the reasons behind the delay in passing on wholesale price reductions are unclear, the AA expressed concern over the stagnant pump prices in December, hinting at possible pricing issues. The competition watchdog previously raised alarms about inflated fuel price margins, indicating a need for further scrutiny within the industry.
Gordon Balmer, from the Petrol Retailers Association, emphasized that reductions in wholesale fuel prices are gradually being reflected in pump prices ahead of the holiday period.