A government fuel comparison scheme has been lauded for potentially preventing even steeper costs for motorists, despite average petrol prices reaching a three-and-a-half-year high.
The AA suggested the Government’s Fuel Finder tool likely “played a big role” in mitigating the impact on drivers.
Wholesale petrol costs in May soared more than 5p above the previous peak during the Iran oil crisis, yet this “caused less pain at the pump than feared”, according to the motoring organisation.
Last week, the average price of a litre of petrol at UK forecourts stood at 159.7p, a level not seen since November 2022.
The Fuel Finder scheme, which became legally mandatory for UK fuel retailers in February, requires them to report price changes.
This data is then accessible to third-party fuel-price applications and websites, enhancing the accuracy of information provided to consumers.
Luke Bosdet, the AA’s spokesman on road fuel prices, said: “UK drivers appear to have been spared the worst of the sharp rise in petrol wholesale costs from April 17 to May 18, long enough for the fuel trade to have transferred a significant amount of the increase to the pumps.
“It is a period that differs from the pump price surge at the start of the Iran war when higher demand helped to tick over price changes at a faster rate.
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“But, it is very likely that increased competition created by Fuel Finder price transparency has played a big role.”
Mr Bosdet added that some motorway service areas that charged 184.9p per litre for petrol in late April had dropped their price to 178.9p last weekend.
Meanwhile a report by competition watchdog the Competition and Markets Authority (CMA) found there is no evidence that fuel retailers have altered their pricing strategies to take advantage of the conflict in the Middle East, but the lack of effective competition “remains a concern”.
It noted that the difference between the price retailers pay for fuel and the price at which they sell it, known as fuel margins, remained at “historically high levels” in April, at an average of 11.3p per litre.
The watchdog said it “would be concerned” if current high fuel prices “persist” amid recent easing of supply constraints.
Sarah Cardell, chief executive at the CMA, said: “We know prices at the pump are putting real pressure on drivers’ pockets.
“While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more.
“Retailers should be in no doubt that we are continuing to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.
“In the meantime, Fuel Finder can help drivers save up to £9 a tank. The more motorists make use of Fuel Finder-backed services, the better it works – saving money now and driving down prices in the long run.”
RAC head of policy Simon Williams said: “It’s positive to have confirmation retailers haven’t altered their pricing strategies as a result of the Iran war, but it’s worrying the watchdog has concluded competition is still lacking in the road fuel market and that margins are still at historically high levels.
“The Government’s new Fuel Finder, introduced at the start of February, is supposed to help with that but it’s still early days.”