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Oil companies blamed for unjustifiable delays in gas price cuts UK News

Fuel retailers across the UK have been accused of delaying price cuts at the pump and causing misery for millions of drivers in a ‘classic example’ of rocket and feather pricing.

Gasoline and diesel prices have continued to climb over the past week despite a drop in the wholesale price paid by oil companies.

The RAC said the recent wholesale slump has given retailers a “clear opportunity” to cut prices and ease the pressure on drivers they were ignoring in a bid to protect their profits.

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The average petrol price rose above £1.90 a liter over the weekend, reaching 191.05p on Sunday June 27, according to data firm Experian.

The RAC accused retailers of ‘rocket and feather’ pricing tactics (Photo by BEN STANSALL/AFP via Getty Images)

Mr Williams also said the Competition and Markets Authority (CMA) would “undoubtedly” look very closely at retailers’ willingness to raise prices sharply as wholesale costs rise, but the refusal to pass on reductions at the same rate – the so-called rocket and feather approach to pricing.

Mr Williams said: ‘We struggle to see how retailers can justify continuing to raise their unleaded prices when the wholesale cost of petrol has fallen significantly.

“This is unfortunately a classic example of ‘rocket and feather’ pricing in action, and which the Competition and Markets Authority will no doubt be looking very closely at.

“It seems retailers are making it worse for themselves by not lowering their prices on the forecourt when they clearly have an opportunity to do so.

“The only explanation for retailers’ resistance to lowering prices is that they are protecting their profits in the event of a sudden increase in wholesale prices.

“At the end of the day, the longer they last, the more they profit and the more misery continues for drivers struggling with the high prices.”

He called on the government to “act urgently on price transparency and reduce tariff levels”.

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This notice was published: 2022-06-27 13:45:38

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