UK drivers are paying the most for diesel in all of Europe, in accordance with automobile and breakdown providers firm the RAC.
The average value for a litre of diesel is 155p, 5p extra expensive than the second highest average quantity of 150p a litre paid in Ireland and Belgium.
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Unleaded prices aren’t as comparatively excessive, solely the 11th most expensive in Europe at an average of 149p.
There is “no good reason” for the excessive diesel value or for retailers in the UK to not lower pump costs on the pumps, the RAC stated.
Why are costs so excessive?
The margin retailers are charging – the distinction between wholesale prices and the quantity it is ultimately offered for excluding VAT – is considerably above the lengthy-time period imply, in accordance with RAC figures.
Lack of competitors might be blamed for the sum, the corporate stated.
“It’s important to note that in Northern Ireland, where there is greater competition for fuels in the absence of supermarket dominance, the average price of diesel is just 144.9p – 10p less than the UK average, and petrol is 6p cheaper at 142.4p.”
While the lengthy-time period average is 8p a litre, a margin of 18p is being borne by motorists at current, the figures present.
Lower gas obligation
The rise comes regardless of the federal government having lower the tax on motor fuels by 5p in March 2022 in an effort to assist drivers with excessive oil prices after Russia’s invasion of Ukraine.
Other European nations which pay extra gas obligation nonetheless general pay much less to refill their automobile tanks, the RAC information reveals.
Italy has the identical quantity of gas tax – the joint highest in Europe – however there diesel remains to be at present 7p cheaper than the UK at an average of 148p a litre.
Competition context
The RAC compiled the information utilizing info from competitors watchdog the Competition and Markets Authority (CMA).
The CMA had concluded its investigation into margins at grocery store petrol stations, saying elevated grocery store revenue margins led to drivers paying an additional 6p per litre for gas in 2022.
In March of this 12 months the regulator stated the margins remained “concerning”.
As a part of a push for value transparency, a pumpwatch proposal was floated, the place forecourts must enter costs inside 30 minutes of a change to allow drivers to simply entry the most affordable petrol and diesel.
Rising prices and crime ranges got as causes for increased pump costs, the manager director of the Petrol Retailers Association Gordon Balmer stated.
“Retailers are grappling with unprecedented ranges of theft, together with vital will increase in enterprise charges, vitality prices, and the National Minimum Wage. These elements inevitably influence the ultimate value on the pump.
“A considerable share of diesel transactions in the UK are made utilizing gas playing cards, which function on vastly decrease margins. This additional compresses the margins out there to retailers and contributes to the upper costs seen by customers.
“Despite the challenges posed by elevated operational prices our members remain devoted to offering honest and aggressive costs. The PRA encourages motorists to make use of assets such as petrolprices.com to seek out one of the best offers out there.”