Supermarkets cut diesel prices amid ‘competition concerns’ – RAC

Supermarkets have slashed the cost of diesel by more than 7p a litre following concerns voiced by the Competition and Markets Authority (CMA).

Over the two weeks since May 15, when the CMA issued its road fuel market study which stated that average supermarket margins in 2022 had increased over 2019, the average price of a litre of diesel at supermarkets fell by 7.44p. It means that a litre of fuel fell from 151.02p to 143.58p.

The RAC has been calling for the UK’s largest fuel retailers to cut the price of diesel ever since its wholesale price dipped below that of petrol at the end of March. Despite this change, the price of a litre of diesel has remained ‘stubbornly’ high, according to the RAC, with cuts of 10p only coming in the month prior to the CMA’s announcement.

The gap between the average prices of a litre of petrol and diesel at supermarkets was 9p on May 15, yet by Monday (May 29) this difference had fallen to 2.5p. However, the RAC believes that diesel prices should still be 6p lower than they are today at 136p a litre if a ‘fair’ price was being charged.

Simon Williams, RAC fuel spokesman, said: “Since the Competition and Markets Authority’s made its announcement about supermarkets increasing their margins compared to three years ago and said they will be formally interviewing bosses, it appears the rate at which the price of diesel has fallen has sped up.

“Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. As a result average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p.”

The UK-wide average price of diesel currently stands at 147.55p a litre, with unleaded slightly less at 143.14p – a gap of more than 4p. In contrast, the difference in April averaged 14p a litre, even though diesel was 4p cheaper than petrol in wholesale markets.