More significant fuel price rises on the way, according to the RAC

In terms of fuel prices, 2022 was one of the most volatile years since records began – and when you compare that to the lows and highs they went through in 2020, that’s really saying something. And while prices might now have fallen from their record highs in July 2022, the RAC noted that they still weren’t falling as fast as they should do, and said that fuel retailers were engaging in ‘rocket and feather’ pricing – something now backed up by the UK’s Competition and Markets Authority.  

Now, drivers are being warned against filling up their vehicles in the coming days if possible, because with wholesale prices on the rise again, it could become significantly more expensive. And with the current cost-of-living crisis already in full swing, that means certain drivers might be more tempted to engage in fuel skimming from their employers – potentially, including you. (That’s exactly what we’ve designed our products to prevent; products like TankSafe Optimum, the only product with the ability to make your vehicles 100% immune to fuel siphoning.

So, what’s in store for 2023, and how will it affect you?

Why is the RAC advising drivers against filling up if possible?

It’s essentially down to what the RAC describes as a ‘galling failure’ by fuel retailers to reduce their prices fully in line with the huge fall in recent wholesale costs.

This is what’s known as rocket-and-feather pricing – when rises in wholesale costs are quickly reflected in pump prices, but any subsequent falls aren’t passed on to drivers quite as quickly. Effectively, that means prices are kept artificially high, enabling retailers to make more money out of drivers.

This time, it looks like it’s drivers of diesel vehicles who are being hit hardest. Wholesale diesel costs dropped by 32p per litre in the eight weeks to December 11th, but in that same period the average pump prices only fell by 20p per litre – which means retailers were effectively profiting by an extra 12p per litre.

Wholesale petrol prices, on the other hand, dropped by 23p per litre over a similar period. However, it then took another month for average pump prices to drop by a total of just 18p per litre – again, a difference of 5p per litre during those 8 weeks, from every driver who filled up.

Now, wholesale prices are on the rise again, and price reductions have stopped at forecourts. An RAC spokesman has gone on record clearly stating that “there is currently no justification for pump prices to rise”, but there is a strong suspicion that they are very likely to do so anyway.

It’s not just the RAC railing against retailers either. In December, the UK Competition and Markets Authority also released a preliminary report which found evidence of rocket and feather pricing. Its tone was fairly measured, although notably some other experts have been a little more frank in their language, accusing fuel retailers of “rampant exploitation” and “chronic profiteering”. There have already been several proposals put forward from various quarters with a view to preventing the issue in future, including a regional price checker, or even an official fuel regulator (the latter suggested by FairFuelUK).  

So what does all this mean for you? 

Well to start off with, there’s the immediate impact that the fuel price rises might have on keeping your fleet fuelled up and on the roads – so it’s worth taking stock of your finances as we move into February, and seeing if there’s anything you can do internally to minimise the immediate impact of price rises on your business in the short-term.

It's also a good idea to look a bit more long-term too though, and think about how to protect the fuel you already have on-site. With the current cost-of-living crisis, countless drivers will be looking for ways to save fuel in any way they can. That’s where fuel skimming can become such a major issue – it costs UK companies millions each year, and in recent years the problem has only been compounded by the constantly volatile rise and fall of fuel prices. And now that those prices are set to rise again, it’s definitely worth looking at effective ways to protect your fuel.

That’s where we come in here at TankSafe, with our reliable range of fuel protection devices. First and foremost amongst them is TankSafe Optimum – an anti-siphon device which we’ve specifically designed to provide 100% protection, so you can have peace of mind against fuel spills, overfilling, and skimming. You can find out more on its dedicated page on our website, or find out answers to some of the most common questions over on our FAQs page. If you’ve still got queries, our experts will be happy to resolve them - fee free to give us a quick call on 01253 400 401, and we’ll be happy to help however we can!