Supermarkets are facing accusations of unfairly charging customers in rural areas for fuel, as petrol prices in the UK reach their highest level in six months. According to the motoring group AA, petrol prices hit 149.13p per litre on Sunday, the highest since February, and diesel broke 150p per litre for the first time since May, reaching 150.61p. These price increases are attributed to global production cuts causing oil prices to rise, resulting in higher pump prices. The AA warns that these price hikes will impact holidaymakers traveling on UK roads who are already burdened by the cost of living crisis.
In addition to the overall increase in fuel prices, the AA also revealed that drivers in rural areas are paying, on average, between 10p and 15p more per litre for supermarket petrol compared to their urban counterparts. This discrepancy persists despite parliamentary scrutiny and oversight from the competition watchdog. While larger towns and cities have petrol prices of 135p or less, many rural areas face prices around 145p per litre. Even within towns and cities, neighboring areas can have a difference of up to 6p per litre.
Grant Shapps, the energy secretary, recently abandoned plans for a mandatory law to promote transparency in fuel prices by supermarkets. Instead, he supported a voluntary comparison scheme in a meeting with top executives from major retailers such as Asda, Tesco, Morrisons, and Sainsbury’s, as well as fuel providers like BP, Shell, and Esso. These companies had come under fire for failing to fully reduce fuel prices despite decreases in their wholesale fuel costs.
The Competition and Markets Authority (CMA) stated in July that prices had risen since 2019 due to a lack of aggressive competition among the traditional price leaders. Luke Bosdet, the AA’s spokesperson on pump prices, expressed disappointment and said the supermarkets were still charging varying prices across the country, even after government and CMA interventions. He highlighted the lack of competition within higher-priced communities, where supermarkets have maintained higher prices while company-branded forecourts could have offered lower prices.
Despite supermarkets bringing prices down by just half a penny compared to company-branded retailers in the past month, diesel prices have increased by a similar amount. As a response to questions about profit margins, Asda has recently started publishing fuel prices at its forecourts online, becoming the first retailer to offer such a service.
Overall, there is ongoing concern about the inconsistent and higher fuel prices in rural areas, highlighting the need for greater transparency and competition in the industry. The actions and decisions of supermarkets and fuel providers are under scrutiny, and despite some progress, there is still room for improvement in ensuring fair pricing for customers.
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