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Diesel motorists subsidising petrol drivers

Fuel retailers are overcharging diesel drivers to compete on petrol prices, according to the AA.

Diesel drivers are subsidising petrol drivers, according to an AA report. Customers are being charged as much as 3p per litre more for diesel in order for fuel stations to be able to offer lower petrol prices. 

Diesel drivers are subsidising petrol prices.
Diesel drivers are subsidising petrol prices.

Diesel is now, on average, more than 5p per litre more expensive than petrol at the pumps, yet only costs around 1p more wholesale.

On the continent, motorists have seen diesel prices drop, as savings made on wholesale prices have been passed onto the consumer.

Edmund King, president of The AA, said: “Neighbouring European countries have passed on the benefit of lower diesel wholesale costs to their drivers while the UK’s fuel industry has chosen to siphon off the savings. Retailers, particularly supermarkets, [have cut] their margins on petrol, and this is very welcome. But it shouldn’t be done at the expense of diesel drivers.”

Vehicles with diesel engines have been growing in popularity over recent years, initially due to high petrol prices, lower rates on tax and better fuel economy. With diesel now proving more expensive, those who have splashed out on a diesel car will undoubtely be frustrated to learn that the increase in diesel prices at the pump can be attributed to petrol subsidies.

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