Fuel retailers hit back at detractors, blaming volatile market for pump price increase
Fuel retailers have hit back after motoring bodies have accused them of “inexplicably” rising fuel prices at UK pumps.
Gordon Balmer, director at the Petrol Retailers Association (PRA), has told journalists that operators are currently operating at a loss due to wholesale prices rising because of the volatile oil market.
“Independent fuel retailers need to have around 10.0ppl to operate their business,” he said. “This year average fuel margins have been about half of that and this is in the context of reduced fuel sales and rising labour and energy costs.”
Balmer’s comments, which were echoed by the British Retail Consortium, came in response to condemnation by the RAC and AA, who over the last few days accused retailers of profiteering by pushing up prices despite a slump in wholesale costs.
“Drivers up and down the country have a right to know why they’re having to pay what they are for fuel when the costs to retailers right now are so much less than they were a few weeks ago,” said today the RAC fuel price spokesperson Simon Williams.
The AA head of policy Jack Cousens added fuel to the fire, when he said motorists were “being taken for fools by retailers.”
“With the Prime Minister and the Chancellor talking openly about the prospect of cutting fuel duty further, drivers need to hear less talk and see more action,” he said.
Cousens reinforced the AA’s previous calls for an additional 10p cut in duty, which could help “ease the pressure at the pumps” as well as “keep prices in supermarket aisles down.”
Chancellor Rishi Sunak told Commons on Tuesday he would consider a “more substantial” fuel duty cut following mounting calls.