‘No justification’ Supermarkets make huge profits on petrol after price of oil soars again

Petrol prices: Howard Cox calls for cuts to fuel duty

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While the cost of living rockets for motorists around the country, the UK’s largest supermarkets are seeing enormous profits according to new figures. The profits are due to the soaring cost of crude oil which jumped from $49 (£40) per barrel last January to $94 (£82) per barrel this month.

The new figures from motoring organisation the RAC show that jump in cost has led to profit margins on petrol sales almost tripling for the big four food retailers, the Times reported.

Margins widened to 8.6 percent last month compared to 3.2 percent in 2019.

In previous years supermarkets have taken a loss on petrol in order to entice customers to do weekly shops.

But the jump in the cost of oil has allowed them to raise prices at the pumps resulting in hugely increased revenue.

It comes as the cost of diesel hit a new record high last week.

The latest figures from the AA show that the cost of diesel has now reached £1.51.21 per litre, the highest figure in recorded history.

The previous high was on November 20 last year when the cost hit £1.51.10 per litre.

Petrol prices are also within a fraction of a penny of the most expensive they’ve ever been, putting added pressure on consumers.

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Campaign group FairFuelUK has called for a cut in fuel tax rates to help people suffering from the rises.

They say this would reduce inflation which would have a positive impact on the UK.

Dropping fuel duty rates would increase GDP, create more jobs and stimulate more consumer spending.

And they believe the economic outcome would create extra income for the Treasury as a result of a buoyant economy.

Howard Cox, founder of FairFuelUK has also called for an “inquiry into the manipulation” of fuel costs.

He said: “The Cost-of-Living crisis is now the ideal time for a visionary in-touch leader to take that control and reduce taxes to really help those who put him into power.

“Failure to do so will magnify an already unnecessarily created electoral divide.

“It is in the Prime Minister and Chancellor’s hands to lower fuel taxation now on the highest taxed diesel drivers in the world.”

RAC fuel spokesperson Simon Williams said: “At the moment, we can’t see any justification for a big leap in forecourt prices so we’re urging retailers to continue taking normal margins on each litre they sell.

“This will ensure drivers, many of whom depend on their vehicles, aren’t forced to pay even higher prices.”

Tesco currently leads the fuel market in the UK with a market share of nearly 16 percent.

BP comes second with a market share of 14.5 percent.

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