The British motoring public were promised cheaper petrol on the switch to E10, but not even cheaper wholesale prices can stop fuel prices reaching the highest levels since September 2013.
Drivers are now paying on average 135.51p a litre for petrol, even though wholesale prices have fallen from their August high of 45p-a-litre, this means that petrol retailers are currently enjoying their biggest profit margin in almost a year.
“Retailers are now paying 1.5p a litre less for petrol, although you wouldn't know it from what the majority continue to charge their customers,” said Luke Bosdet, from the AA’s Fuel Price Report.
“Worse still, E10's lower fuel efficiency and car traffic now back to 95 per cent of the pre-pandemic level means that petrol stations are selling more fuel. Sadly, once again, the AA has to report that drivers are paying through the nozzle for their petrol.”
The AA report shows that there is a huge difference in what retailers are charging. To be expected supermarkets are cheapest, with Asda offering petrol at 131.42p, but BP are top of the list at 137.62p. Even the anticipated savings expected from the switch to the greener E10 fuel have been lost, with bad weather in the Unite States blamed.
“We now know that the switch to E10 petrol (10 per cent ethanol) on 1 September saw the wholesale price of petrol drop by more than 4p a litre overnight,” Bosdet continued.
“However, much of that saving was lost as Hurricane Ida's enduring impact on the southern USA's oil and fuel production sent the price of oil from around $66 a barrel in the third week of August to above $73 in September.
“All the same, that oil price increase hasn't wiped out all of the E10 petrol price saving.”