The ministers stressed that retailers must completely cut petrol tax

Fuel giants will be asked to reduce taxes on motorcyclists as diesel prices reach new heights.

After the Times reported that the forecourt was failing to honor nearly half of the tax breaks, Business Secretary Quasi Quarteng wrote to retailers to “save their responsibility” to give drivers savings.

In the letter, he said: “The British public is concerned about the pace of price increases in the forecourt and is disappointed that the Chancellor’s reduction in fuel tariffs does not appear to have been visible or passed through the forecourt. Meaningful way.

“It is also unacceptable that even within the same retail chain there are vastly different prices in different locations. So the Chancellor and I would like to reaffirm our expectation and re-engagement that the members do their best to ensure that a fair agreement is reached across the country. “

Quarteng added that because of the perceived inconsistencies to date, he has appointed competition and market authorities to closely monitor the pump situation.

He said: “I have been reassured that they will not hesitate to use their power if there is evidence of competition or consumer law violations against petrol stations.”

This comes at a time when motoring groups are claiming that increasing online shopping means that supermarkets are less dependent on competitive fuel prices. Edmund King, president of AA, says large retailers are increasingly using gasoline as a way to lure buyers to the isle, along with other strategies, such as branded price matches that also apply online, to growing choices.

King says: “In the past you have always seen Asda break the chain and cut 3p per liter. [off fuel]. Morrison will follow and then Sensbury, and much more.

“Supermarkets cut this kind of spending to get people to the isle. With more online shopping, which continues after the lockdown, they don’t have to try as hard to get people off the isle of their stores as they do to get fuel discounts. “

He added that cities with major supermarkets, mainly Asda, would generally “bring down prices across the board” because they were always more competitive, adding: “At the moment pricing seems to be less competitive than it used to be.”

The average price on Monday was 180.3p per liter for diesel and 166.8p per liter for petrol, according to figures from Experian Catalyst.

On March 23, when the tariffs were announced, they were 179.9p and 167.01p, respectively.

RAC warns that retailers are charging more than 2p per liter before the policy comes in, with 11p on unleaded and 8p on diesel.

King said it was “increasingly clear” that fuel prices continued to rise despite a slight change in the global benchmark Brent crude. It stood at $ 113 a barrel when the policy was announced and has since fluctuated between $ 110 and $ 114. Gordon Balmer, executive director of the Petrol Retailers Association, which represents the independent forecourt, said comparing pump prices with wholesale prices “gives only a partial picture” when storage and delivery costs are considered “product price volatility” as well.

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