Postcode lottery sees diesel prices 6p more expensive per litre

The price of diesel has continued to fall in the weeks following a damning report from the Competition and Markets Authority (CMA), according to new RAC analysis.

Since the middle of May, the average price of a litre of diesel at supermarket filling stations has fallen by 7.44p from 151.02p to 143.58p.

The CMA had called out supermarkets and other major retailers for not cutting the price of fuel, specifically diesel, in recent times.

Wholesale prices of diesel had fallen below the price of petrol in March, yet most fuel stations were slow to reflect these changes in general prices since then.

The “Big 4” supermarkets were selling petrol for around £1.43 in April, yet diesel remained much higher at £1.61.

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Simon Williams, RAC fuel spokesperson, highlighted how supermarkets had quickened the pace of diesel price drops since the CMA report.

The report, which was the final update before the July publication of the full analysis, said the CMA would be interviewing senior management figures from supermarkets.

Mr Williams added: “Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. 

“As a result average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p.

“Even today, with 27p having come off the average price of supermarket diesel since the start of the year, diesel drivers are continuing to get a poor deal. 

“For two straight months, it has cost retailers less to buy diesel on the wholesale market than it has petrol, yet they continue to charge more for diesel at the pumps.”

The RAC believes that supermarket prices should be around 6p a litre lower than they are currently, which would cost drivers around 137p per litre.

While supermarkets are cheaper than other filling stations, the amount of fuel they sell helps them keep their prices slightly lower.

However, independent retailers have started pricing out supermarkets by offering fuel for less than even the most competitive prices.

The rise of services like PetrolPrices and other fuel checker apps have helped drivers see the cheapest costs in their area, forcing retailers to slash prices to remain popular amongst drivers.

In July, the final report from the CMA is expected, with the RAC adding that it will hopefully bring some price drops for hard-pressed motorists.

Mr Williams concluded, saying: “We hope it means the biggest retailers start charging fair prices at all of their sites across the country, and not just at those where they’re competing directly with other forecourts locally. 

“It can’t be right that the same brand can sell fuel for so much more in one part of the country than another – this sort of postcode lottery is wholly unfair to drivers and completely unjustifiable.”