Supermarkets are charging up to 8 per cent extra for fuel for people driving this Christmas, despite wholesale costs staying the same.
Campaign group FairFuel UK analysed prices at 122 forecourts of the biggest supermarkets – Asda, Tesco’s, Sainsburys and Morrisions – found that pump prices are pricier by up to this amount this December, compared with last.
This is because the supermarkets have not offered petrol discount schemes, such as 10p off a litre of fuel when spending £50 in store, this year, as they did in previous years.
Prices have not been lowered even though wholesale costs are the same as last year and the Government cut fuel duty by 5p per litre until March.
FairFuel has also estimated that supermarket prices should be averaging below £1.40 for petrol and £1.60 for diesel, but they are averaging between £1.52 and £1.75, respectively.
Speaking to Times Radio this morning, Mark Spencer, the environment minister, urged supermarkets to ‘try and look after their customers’.
Suggesting people should shop around, he added: “If you move your custom to places where it is a low price, and there’s lots of independent petrol retailers now that are actually lower than the supermarket prices, you know, use that, use your consumer power to drive those prices down again.”
The cheapest supermarket for fuel currently is CostCo. While prices change according to location, it is charging 137p per litre in the Watford area of London, where Tesco, Asda and Morrisons in the same region are selling at 148 to 149p.
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CostCo is a bulk-buy supermarket and you have to be a member to shop here, which starts at £15 per year. Only certain professions can get membership although this includes a range of jobs such as certified chartered accountants, doctors, solicitors, chartered surveyors and civil engineers.
There are 19 petrol and diesel forecourts run by CostCo (see below for where these are).
Its not just supermarkets that are charging more.
Overall, motorists will find they are paying more than a quarter more on their fuel this year when compared to 2017, according to data from the RAC.
A tank of unleaded petrol for a 200-mile drive costing £34.77 now, as opposed to £27.41 five years ago – a 27 per cent hike. This is also up from £33.11 from last year.
Similarly, those driving 100 miles will find they are paying £17.38 now compared to £13.70 in 2017.
Petrol costs on average 152.96p a litre which is 7p more than it was on 22 December 2021 (145.66p). Diesel, however, is 27p more expensive, at 175.75p.
This means drivers heading off on the festive getaway are paying nearly £4 more – £84 for a full tank – compared to last Christmas.
Simon Williams, spokesperson for RAC, said: “With the cost-of-living crisis making this one of the toughest Christmases on record, it is even more galling to know drivers are being heartlessly overcharged for fuel making this the most expensive ever festive getaway on the roads.
“The big four supermarkets, which dominate UK fuel retailing, have robustly refused to significantly lower their forecourt prices to reflect what’s happened with the substantial reduction in the price of wholesale fuel that they are enjoying.”
He said the UK is now in a “bizarre situation” where many smaller independent retailers are charging far less for their fuel than the supermarkets.
The RAC is urging drivers to shop around to find where is the cheapest to buy fuel while FairFuelUK is calling for the Chancellor and the Prime Minister to announce there is no Fuel Duty hike in the March Budget.
Williams added: “We urge the supermarkets to properly cut their petrol and diesel prices to give drivers the Christmas present they deserve.”
CostCo fuel court locations
Birmingham: 100 Watson Road, Nechells, B7
Bristol: 4 St Brendan’s Way, Avonmouth, BS11
Chester: Dunkirk Trading Estate, CH1
Coventry: Torrington Avenue, CV4
Derby: Wyvern Way, DE21
Edinburgh: Costkea Way, Loanhead EH20
Gateshead: Off Mandela Way, Handy Drive, Dunston, NE11
Glasgow: 15 Cobden Road, G21
Haydock: Andover Road, WA11
Leicester: 3 Westmoreland Avenue, Thurmaston, LE4
Liverpool: 30 Waterloo Road, L3
Manchester: Traders Avenue, Stretford, M41
Reading: 100 South Oak Way, RG2
Sheffield: Unit 8, Parkway Business Park, S9
Southampton: Regents Park Road, SO15
Stevenage: Gunnels Wood Road, SG1
Thurrock: West Thurrock Way, RM20
