Petrol prices have continued their upward trend, marking the fourth consecutive month of increases, with an average rise of 4.5 pence per litre in September, as reported by the RAC.

In September, unleaded petrol prices escalated from approximately £1.52 to £1.57 per litre, pushing the cost of filling a family car to over £86.

While the RAC attributes this surge to higher global oil prices, it also alleges that petrol is being "overpriced."

However, independent forecourt operators counter that they are not inflating petrol prices unjustifiably.

The Petrol Retailers Association, representing independent sellers that account for 64% of UK forecourts, stated that their margins are under pressure due to increased labor and energy costs, coupled with reduced sales.

While the cost of living in the UK has shown some signs of easing, with consumer price inflation decreasing to 6.7%, the rising prices of both petrol and diesel are likely to add financial strain to households.

The RAC expressed concern that drivers are "sadly really starting to suffer again at the pumps." According to their latest data for September, petrol prices increased by 4.5 pence per litre on average during the month, while diesel prices surged by 8 pence per litre. Diesel prices have climbed from £1.54 to £1.63 per litre since the beginning of the previous month.

Simon Williams, spokesperson for the motoring group, contends that the RAC's analysis indicates that "petrol is currently overpriced by around 7p per litre." He noted, "In the last two weeks, the wholesale cost of diesel has become 10p per litre more expensive than petrol, yet the gap at the pumps is only 5p. If retailers were playing fair with drivers as a whole, petrol would be at least 7p cheaper than its current average of £1.57, down to around £1.50 per litre."

Gordon Balmer, executive director of the Petrol Retailers Association, responded to the RAC's claims by pointing out that margins have "inevitably increased" due to rising operating costs. He criticized the RAC for attempting to generate public anger by suggesting otherwise, deeming it "deeply irresponsible."

Simon Williams also expressed concern about the higher retailer margin for petrol across the UK, particularly following an investigation by the Competition and Markets Authority earlier this year. The probe focused on the fuel retail market's dominant players, including Asda, Sainsbury's, Morrisons, and Tesco, revealing that weak competition had led to increased margins on fuel and higher costs for drivers.

In response, some retailers agreed to establish a scheme enabling drivers to compare live fuel prices online, and the government intends to make this practice mandatory.

The BBC reached out to all four major fuel-selling supermarkets for comment. Asda asserted its position as the "cheapest place for drivers to fill up across the UK," with its unleaded petrol being 4.8 pence cheaper on average.

A spokesperson for Sainsbury's welcomed "greater pricing transparency in the fuel market" and maintained that the company consistently offered "among the lowest fuel prices in every area that we operate." Regarding increased margins, the spokesperson explained that profits had been utilized to absorb inflation, thus maintaining lower grocery prices.

The rise in fuel prices in 2021 and the first half of 2022 was primarily attributed to soaring oil prices following Russia's invasion of Ukraine. Prices later receded, but the recent upturn is the result of Saudi Arabia and Russia, members of the OPEC+ group and two of the world's largest oil-producing nations, deciding to reduce production in August. Consequently, oil prices have risen, with Brent crude oil surpassing $90 a barrel. Additionally, the weaker value of the pound has made wholesale fuel, traded in US dollars, more expensive in the UK. Photo by Stacey Harris, Wikimedia commons.