The AA has claimed the average wholesale price for petrol has fallen by 2p since January 11 from 41p to just over 39p. UK motorists are paying the highest prices on record while other countries have seen the cost of petrol reduced.
Figures from the AA show that the average price of a litre of petrol has risen from 127.21p on January 4th, when the rate of VAT was increased, to 128.6p at the end of the month, while diesel has increased to 133.2p a litre. However the increase in price cannot be solely blamed by the increase in tax alone. It is thought that British retailers have chosen not to pass on the price reduction because of lower than expected profits over the Christmas period.
AA spokesman Luke Bosdet said: “The fact that we know European retailers passed [the cuts] on leads you to only one conclusion: That our retailers are keeping their prices high and enjoying the profits.”
Drivers could face even higher fuel prices if a planned rise in fuel duty goes ahead in April.