Petrol prices hit three-and-a-half-year high as watchdog blasts ‘over-priced’ pumps

PETROL prices have soared to their highest level in three-and-a-half years in a blow to motorists this bank holiday. Petrol now costs an average of 161.6p a litre, the highest price since November 2022, according to the AA. Diesel has soared to an average of 183.4p a litre, the highest level since the beginning of June. The news comes after a fortnight ago, the Competition and Markets Authority accused the road fuel trade of a “lack of effective competition”. Sign up for the Money newsletter Thank you! The watchdog added that some retailers have not immediately passed falls in wholesale diesel prices on to drivers. Meanwhile, with the August bank holiday this weekend petrol prices could edge higher, even though the wholesale cost remains below where it was in early May. The wholesale price of petrol has climbed to 68.5p a litre, following a jump in oil values since early August. But it has yet to reach the peak of late April into early May, when it exceeded 72p. Despite this, petrol at the pump this week averages almost 2p a litre more than the 159.7p a litre it reached at the end of May, which was caused by cost surges in that month. At the end of July into the start of August the wholesale cost of petrol fell by more than 10p a litre before an intensification in the US-Iran conflict sent it soaring back up again. Most read in Money Despite this, the fall knocked just 0.4p off the UK’s average pump price, bringing it down from a summer high of 161.6p a litre. Meanwhile, many supermarkets are only allowing customers to save money on fuel if they spend cash in their stores first. For example, Tesco is offering customers 8p off a litre of fuel but only if they spend £60 in store. Asda also previously offered 5p off a litre of fuel when you spend £40 or more in store. The AA said supermarkets and neighbouring petrol stations matched each other’s high pump prices. Doing this meant the fuel was not competitively priced, so drivers were forced to pay more. Luke Bosdet, AA spokesperson on road fuel prices, said: “In many ways, UK pump pricing is back to its worst: too often over-priced and uncompetitive, with too many communities denied road fuel at a reasonable price – hence the competition watchdog’s stinging criticism.” It’s important to make sure you’re getting the cheapest price when filling up your car with fuel. Use our interactive tool to help you find the cheapest petrol stations in your area. Comment now