A recent report has revealed that drivers in rural towns are being charged an extra 10p per litre for petrol compared to their counterparts in larger towns and cities. The AA Fuel Price Report found that petrol prices in rural areas can reach up to 145p per litre, while urban areas pay as little as 135p per litre. The report also highlighted that even within urban areas, there can be a price difference of up to 6p per litre. This news is surprising considering the Competition and Markets Authority’s efforts to ensure fair pump prices and the pressure being placed on petrol retailers by MPs to lower prices.
The AA’s report further shows that the average price of petrol in the UK has remained relatively stagnant over the past month, with a decrease of only 0.08p from mid-June. Diesel prices have also seen a slight decrease, falling to 144.36p per litre. When comparing prices between the ‘Big Four’ supermarkets (Asda, Morrisons, Sainsbury’s, and Tesco), it was found that unleaded prices in mid-June averaged at 141.39p per litre, compared to 143.51p among their competitors. This difference has since increased to 2.65p per litre.
Energy Secretary Grant Shapps recently held talks with industry leaders following a study by the CMA that revealed drivers were overcharged by £900 million last year. Shapps recommended that petrol retailers should publish real-time pump prices to help drivers find the cheapest option. However, industry commentators argue that this alone will not ensure a fair deal for motorists.
Luke Bosdet, spokesman for the AA, commented on the pump prices and the struggles faced by fuel retailers in breaking bad habits. He hopes that the upcoming scheme of voluntary pump price transparency in August, alongside efforts by the Energy Secretary, will lead to improved pricing practices. Only time will tell if these initiatives will result in fairer prices for drivers during the summer holiday period and beyond.
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