RAC threatens to act against petrol stations

He said that they will not hesitate to act against petrol stations if there is evidence that they are infringing competition or consumer law.

RAC fuel spokesman Simon Williams said that although only a fifth of petrol stations are in the UK, the big supermarkets are responsible for around half of all fuel sales, so how they choose to price petrol and diesel has a huge impact on what drivers end up paying. He added that when wholesale fuel prices fall dramatically, it can be extremely frustrating for drivers when pump prices don't start coming down. It usually takes one retailer to fire the starting gun and cut its prices in order for others to follow.

The biggest retailers tend to be reluctant to reflect falling wholesale prices at the pumps day-to- day, but they seem to pass on increases when wholesale prices are rising. It can be to the detriment of drivers. The RAC believes that supermarkets wait for long sustained drops in wholesale prices before they cut their forecourt prices. If they cut the retail price too soon and then the wholesale price goes up again, they will have to reintroduce a higher price, which looks bad for customers, according to the motoring organisation.