Oil prices have come down, but fuel prices go up. UK motorists may need to pay 6p more per litre. Some call fuel retailers “greedy rip-offs.”
Another Increase
It was recently announced that UK motorists are going to pay an extra 6p a litre when filling up on fuel.
People May Be Put Off Driving
Even if using your own transportation could seem more convenient, it might not be the most economical if fuel prices continue to increase.
A Staggering £1.6 Billion
The increase is said to cost motorists around £1.6 billion, The Sun reported. Analysts are suggesting that this fuel increase could very well be the steepest since 2019, according to the report.
The Fuel Gap
Parkers reported that there is a vast gap in fuel prices between retailers. 35.2p is the current gap between petrol providers and diesel at a more significant gap of 38.2p.
6p Profits for Some Retailers
Petrol retailers are making 6p in profit per litre, which might be great for the retailer, but not for the motorist.
ASDA Used To Lead the Pack: Inexpensive
Compared to a time when ASDA was doing better, it remained a favourite amongst motorist looking to get a good deal when filling up at their petrol garages. However, times have changed.
ASDA No Longer Affordable
According to The Sun the company had less competition and changed since being acquired. As a result, ASDA fuel is no longer considered affordable.
2023 Sees More Fuel Expenditure
Sarah Cardell, the chief executive of Competition and Markets (CMA) told the Sun that in 2023 alone, the fuel increase was already over £1.6 billion.
Missing the Competition
The fuel prices are high, despite the lower oil costs. Cardell told The Sun that there was a lack of competition to regulate the prices. With the missing competition, fuel prices could become unpredictable.
Falling Oil Prices Benefits
With lower oil prices, the UK economy should see some positive results. According to PwC, lower oil should pave the way to more employment, manufacturing, and investment.
Work With UK Government
CMA Chief Executive told The Sun that working with the government to increase the competition could serve well.
2023 CMA Review
According to Reuters, important pointers were made in last year’s CMA review. Points addressed what could be done to aid consumer transparency and prevent steep fuel costs amidst a high economy.
Thinking About the Consumer
The former secretary of finance, Jeremy Hunt, said in a statement on X (formerly Twitter) “when their consumers are feeling the pinch, retailers should not be charging over the odds for fuel as some have been.”
CMA Chief Has a Vision
In a statement, Cardell said, “one year on and drivers are still paying too much. We want to work with government to put in place our recommendation of a real-time fuel finder scheme to kick start competition among retailer.”
“Arm Drivers”
The CMA chief also announced that the consumer should be in control of what they pay. She said she wants drivers to be armed with an easier way to find the most affordable fuel prices to fill up. She suggested doing this via sat-nav, mobile apps, or maps, The Sun reports.
Save Nearly £5
Cardell confidently said that the “fuel finder scheme” should save drivers up to £4.50 when filling the tank.
Other Options for Consumers to Help Save Fuel
The economy is challenging and has caused many UK drivers to truly feel the crunch each time they need to fill up. However, some possible options could help while the government works out a way to ease fuel costs.
Electric Vehicles Might Work for Some
While electric vehicles use zero fuel, they aren’t the most affordable cars around. Many people still opt for fuel-operated because they are the cheaper option.
Smaller Engines
Drivers may choose a smaller car with a less powerful engine or a smaller engine that won’t burn fuel as quickly. Naturally aspirated engines could save you money as they don’t need as much fuel.
And You?
Are fuel costs putting a damper on your motoring freedom?
Featured Image Credit: Shutterstock / Vivid Brands.