Front yards operated by supermarket chains including Asda, Tesco, Morrisons and Sainsbury’s are contributing significantly to this price surge.
Daily price comparisons across the UK show retailers have been slow to pass on savings to drivers. New research from automotive group RAC shows that British drivers now spend on average around 20p more per liter of diesel than their European Union counterparts.
The average price of a liter of diesel in the UK currently stands at 152p, with the UK holding the top spot for diesel prices in Europe for seven weeks running.
However, drivers in Northern Ireland are relatively more insulated from price rises, with the price of diesel per liter around 10p lower than the rest of the country, despite coming from the same source .
With the surge in prices, the price of a full tank of diesel now stands at £83.60 (€98.91). For a standard family car with a capacity of around 55 litres, a full tank now costs around £11 more than in the rest of Europe.
Supermarkets are thought to be the biggest culprits behind this price rise, with chains like Asda, Tesco, Morrisons and Sainsbury’s charging the most. These chains currently operate around 20% of parks in the UK.
However, their influence is significantly weaker in Northern Ireland, where they represent only 6% of the forecourts. As such, diesel prices in Northern Ireland appear to be experiencing a respite.
An RAC spokesperson, Simon Williams, told the Telegraph: “Profit margins once again remain consistently high and drivers are paying the price.
“Our data clearly shows that pump prices have not kept pace with the fall in wholesale prices, so drivers across the UK – with the exception of those in Northern Ireland, where lower prices fairer are charged – again losing several pounds each time. they fill up.
“There is no good reason why UK retailers should not reduce their pump prices even further. We can only think they are hoping no one will notice because of the distraction caused by the general election.”
Why is the UK seeing diesel prices rise much higher than in Europe?
One of the main reasons why diesel prices in Britain are much higher than in Europe is because retailers are not adequately passing on lower costs to the consumer. According to the RAC, retailers currently make a profit margin of around 16p per liter of diesel. In contrast, petrol has a slightly lower margin of 14p.
However, this is still well above the 3p margin seen pre-pandemic by these supermarket giants, as well as the historic 8p margin. This shows that supermarkets continue to benefit from rising fuel prices, while consumers are left to bear the cost.
In turn, retailers justify these price increases by blaming rising business costs, interest rates and wages, which have eroded their profit margins.
Gordon Balmer, executive director of the Petrol Retailers Association (PRA), said, as reported by Sky News: “We must take into account the significant increases in operating costs, the reduction in fuel volumes post-pandemic and investment substantial amounts required to move to a low level of consumption. carbon transport system.
“These factors mean fuel retailers need to earn more from fuel sales to stay in business and invest in the future. »
It has also led the UK government to consider a new ‘Pumpwatch’ system, which would allow consumers to compare diesel prices and increase transparency in supermarkets. A price watchdog should monitor this system, to ensure drivers are not overcharged more than they already are.
