RAC asks supermarkets to cut petrol prices by 5p a litre

The motoring body recommends prices being cut by 5p a litre as drivers have not yet felt the benefits of the government's 5p duty cut brought in last year.

Drivers have had to deal with higher prices of petrol for a sustained period of time now, with it spiking after Russia invaded Ukraine in 2022.

Overall, the RAC said the big four supermarkets were making the most profits from petrol, BBC News reports.

This is an average of 16p for every litre of unleaded fuel sold in October, and 12p for every litre of diesel.

The RAC said profits on unleaded petrol was double the average supermarkets had been making since 2012 (Image: Peter Byrne/PA Wire)

It also said the profit on unleaded was double the average the supermarkets had been making since 2012.

In response, Asda told the BBC its prices were around 4p per litre cheaper than the UK average; Tesco, Sainsbury's and Morrisons didn't comment.

Supermarkets face criticism for petrol prices

Supermarkets have recently come under fire for their petrol pricing following an investigation by the Competition and Markets Authority (CMA).

Fuel duty was cut by Chancellor Jeremy Hunt in March this year, but there were concerns it was not immediately reflected through lower pump prices.

The investigation found the cut had been passed on, but the CMA said increased profit margins cancelled out the benefit.

The CMA found that weak competition meant supermarket margins on fuel had increased, resulting in extra costs for drivers. 

Due to this retailers agreed to set up a scheme to allow motorists to compare live fuel prices online.

RAC fuel spokesman Simon Williams said: "Drivers are still losing out massively when wholesale prices come down. But in Northern Ireland, where the supermarkets don't dominate fuel retailing, drivers are getting a fairer deal with a litre of unleaded costing 150p and diesel 157p - 5p less than the UK average."