Sky news this morning:
UK Fuel Prices Soar To A Record High
Last Updated 07:01 18/02/2011
Lulu Sinclair, Sky News Online
Petrol and diesel prices are at a record high, with the motorist losing out over cuts in the wholesale market, the AA has said.
Average petrol prices are 128.81p a litre with diesel up at 134.01p a litre.
And, unlike elsewhere in Europe, a fall in the whole cost of fuel has not been passed on to drivers in the UK.
"The problem is the supermarkets watch the independents and price fuel accordingly, while the independents watch the supermarkets," an AA spokesman told Sky News Online.
"And the independents ask why they should cut prices when the supermarkets then go on to undercut them," he said. "The problem is that it's always the motorist who loses out."
The AA has said that the difference between last year's record high and this year's is that - unlike last year - wholesale prices are lower so there is no reason why prices at the pump should be so high.
It has also claimed that if motorists had been given a 2p drop in the cost of petrol, most of the impact of the VAT rise in January would have been wiped out.
The motoring organisation is calling for a fuel regulator which can adjudicate between interested parties in the same way that other industries operate.
"The cosy convenient relationship where major suppliers say they would like to bring down prices but cannot because of competition is not good for the motorist," the spokesman said.
"Frankly, we don't see why the profits being made on fuel seem to be offsetting price cuts on toilet cleaner or whatever.
"Fuel sales have fallen 13% since 2007 because of soaring prices and the poorer families are being hit hardest. Road fuel is a fundamental necessity, not a luxury."
