Recent analysis says that cash-strapped motorists are still getting a 'raw deal' at the pump, despite record price drops last month.
The RAC said that although average petrol prices sank to 169.8p per litre at the end of last month, but they should be humming around the 161p mark taking into account the current wholesale cost of fuel.
The 12.3p drop in average fuel prices marked the largest monthly drop in records - dating back 22 years - however, the fall in wholesale cost means that this 'only tells part of the story', according to the RAC.
Read more: Supermarkets face renewed criticism from RAC over high petrol prices
The Mirror reports that spokesman, Rod Dennis, said: “12p a litre is a lot to come off prices in a single month so there’s no doubt things could be worse, but in reality drivers of petrol vehicles are still getting a raw deal at the pumps. For whatever reason, major retailers are choosing not to pass on in full the reductions in the wholesale price of unleaded.
“Allowing for a generous 10p-a-litre margin, we should be seeing petrol sold for around 161p a litre.”
Rod also says that there is a 'postcode lottery' with prices across the UK varying excessively from location to location.
A review conducted by the Competition and Markets Authority found that one of the main causes of fuel inflation this year was growing oil refining margins. The increase from the crude oil price when it enters refining stations, to the wholesale price when it leaves in the form of petrol or diesel had more than tripled over the span of 12 months to almost 35p per litre.
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