12th April 2022
The staggering exploitation and greediness shown by oil companies and fuel wholesalers exceed belief. Prices at the pumps should now be 15p to 20p less, because oil costs have collapsed by 30% in March/April stabilising at around $100, plus the Chancellor’s welcome 6p cut in fuel taxes.
And here’s the cogent evidence that the unchecked greed is rife in the fuel supply chain, by analysing data from the widely respected RAC Foundation:
In the 8 years between 2012-2019 yearly profit margins averaged 9.1p per litre for petrol and 10.9p for diesel. Sounds a reasonable return, when you consider at that level it is £5 to £6 profit from every family car filling up.
Yet in the last two and a quarter pandemic years, profit margins have doubled. 2020 to April 7th, 2022, petrol profits have averaged per year 18.2p per litre, a 100% increase. Diesel margins have hit an average of 20.5p per litre, an 87% increase.
Even after Covid, the faceless avaricious businesses still continue to profiteer more so from the cost-of-living crisis by ignoring the Fuel Duty cut and oil prices crashing.
Their profits just keep on soaring. The latest margins recorded for petrol 11th April are now 29p per litre and diesel a staggering 33p per litre.
Even considering the lag time claimed by the Competition and Markets Authority, that it takes 7 weeks for oil costs to wash though to the prices at the pumps, shockingly profit per litre for petrol is still 29p but diesel a mind boggling 44p per litre.
That means the average family diesel is now parting with a staggering £24.20 of hard earned cash in profit, when they fill up, to line those already very fat wallets in the fuel supply chain.
Craig Mackinlay MP and Chair of the Fair Fuel APPG said: "Wholesale oil prices are way down from historic highs but the price at the pump has moved down by mere buttons. It is now even more obvious that motorists are being fleeced by the fuel retailers and it’s time for a ‘Pumpwatch’ price monitor to highlight the truth and bring such blatant profiteering to heel."
Howard Cox, Founder of FairFuelUK said: "My message to Rishi Sunak: With the unbearable ‘just stop oil’ protests causing yet more fuel supply uncertainty in the lead up to Easter, its so way past time your Government started to help UK’s 37m drivers. You could ensure your 5p Fuel Duty cut reaches the pumps and drivers get honest and transparent fill up prices using PumpWatch. Its time you stopped the incessant profiteering. And please also ask Priti Patel to guarantee the Police secure and protect fuel supplies to our vital forecourts."
"There is a foul stench of sickening exploitation hanging around thousands of garage forecourts, at 3 weeks after the Government’s Spring Statement. Our hard fought and historic 5p Fuel Duty cut on one of the world’s highest taxed motorists seems to have gone unheeded by much of the fuel supply chain."
"We should have been seeing fuel price signposts across the country dropping 6p per litre for diesel and petrol at 6pm on the day Rishi stood at the despatch box. Most forecourts it seems, ignored the Business Minister and the Chancellor’s jointly signed letter to retailers to meet the 6pm fiscal deadline."
"What’s more this surprisingly and increasingly anti-motorist Tory administration seem to be sitting back and letting not only the ignorant fossil fuel protesters hamper oil depot deliveries to forecourts, but they are also, dare I say it, almost are encouraging the fuel supply chain to continue to fleece drivers at the pumps. Don’t forget the billions of extra VAT pouring into the Treasury due to eye watering pump prices."
"Lame excuses gushing out from fuel suppliers, saying bulk stock had already been paid for at the higher tax rate, meant they had no room for manoeuvre. One miffed garage owner retorted to me: “It will take a few weeks before the tax cut is seen at my garage”. Funny that! When oil prices rise, pump prices rocket within hours on their already pre-paid existing fuel. This greedy pump pricing hypocrisy rankles deep with drivers across the nation."
"The Treasury’s press office, with amoebic intelligence decided to leak the fated 5p cut in fuel tax, weeks before its announcement in the Spring Statement. Thus, giving an eternity for wholesalers and retailers to fervently raise prices prior to the tax change, even on already paid for, fuel stock. And didn’t they did take advantage, big time. Despite fuel wholesale falls on the day of around 4p per litre, before Rishi Sunak’s sermon, pump prices increased by on average 3p. That truly stinks and I believe is tantamount to being fraudulent!"
"So why doesn’t Rishi Sunak do the right thing to alleviate this part of the crippling cost-of-living crisis. He has the power and voter’s support to stop the continual fleecing of drivers, by implementing our long called for, independent fuel pricing watchdog, PumpWatch. This body would cost him and his government virtually nothing but will save UK’s 37m drivers a king’s ransom. What’s he got to lose? It may just save the Tory’s increasingly beleaguered reputation at the May local elections, particularly in those rural areas where pump prices are the most extortionate."
"Let’s not forget diesel, the commercial heartbeat of any nation. It remains the biggest victim of greedy market speculation, with the gap between derv and petrol growing hugely by the day. These fuel costs are putting a crippling strain on the viability of hauliers and logistics. And the economy too. That’s why I back the Road Haulage Association's logical call for an essential road users fuel duty rebate."
“Sadly, the Government’s efforts to work with the fuel industry so that pump prices are competitive, and market driven, ensuring consumers benefit from lower prices, is not working. The reality is that motorists are now paying £16 per tank more than last year and nearly £2bn of falls in the wholesale price have not been passed onto hard-pressed motorists at the pumps. This is bad for the economy, bad for inflation, bad for business and bad for jobs. That’s why we need to introduce an independent pump pricing watchdog.”
Craig Mackinlay MP, Chair of the APPG for Fair Fuel for Motorists and Hauliers
“Struggling families need a PumpWatch regulator asap. The rip off oil companies are feeding the cost of living crisis as they refuse to cut prices at the pumps even when the international oil price has fallen. If we can have an energy price cap, at least have a fair price at the pumps.”
Robert Halfon MP, Vice Chair of the APPG for Fair Fuel for Motorists and Hauliers
" The perennial pump pricing rip-off scandal that FairFuelUK has been campaigning against for the last decade. PumpWatch is now even more crucial to the Nation’s positive economic growth, jobs, business investment, logistics, consumer spending and social mobility. This beleaguered Conservative Government needs it in place now, to help regain trust again and to avoid long-term voter repercussions. Boris you know this makes economic and political sense, it’s time for you to throw away your anti-motorist plans and recognise the common sense in giving drivers a well-deserved break”
Howard Cox Founder of the FairFuelUK Campaign
“If gas, electricity, water and telecoms get price protection bodies, why shouldn’t motorists have one too? We need ‘PumpWatch’ now, to ensure pricing fairness for both consumers and hardworking fuel retailers too. Most
of the profiteering is at wholesale level not by small independent retailers, who are also victims of the greedy fuel supply chain.”
“Our members are weary of pump prices rocketing when oil costs rise yet taking an eternity to fall when oil is in decline. It makes sense that those uncontrollable costs in the fuel supply chain are subject to closer scrutiny in a PumpWatch body.”
“When oil prices rise and fall, millions of drivers have absolutely no idea what subsequently, they will pay at the pumps each time they fill up their vehicles. It is never ever the same price! There is no consistency,
logic or clarity to the way pump prices are calculated. It remains a closely guarded secret in the fuel supply chain. If it wasn’t for the recent supermarkets’ forecourt price cuts, always lead by ASDA, prices at the
pumps wouldn’t be falling at all."