RAC responds to Danny Alexander’s call for lower fuel prices

Pete Williams RAC head of external affairs said: “We welcome today’s call from Danny Alexander for lower fuel pump prices for motorists. There is certainly scope for a further three to four pence cut in the price of petrol at the pumps passing on the savings that retailers are seeing as wholesale prices drop as world crude prices plummet.

“However it is very important to remember that of the price we pay at the pump 21 pence is VAT and 58 pence is Duty so the Treasury is benefitting to the tune of 80 pence for every litre bought. The remaining 40 to 50 pence is the proportion that can fluctuate according to the pound versus dollar oil price and retailer’s margin. On the face of it the retailers generally pass on the savings but we would like to see this happen faster. It is not necessarily fair to point the finger at the refineries as the majority of them work on fixed margins.

“We welcome the move today by some fuel retailers to cut the price at the pump and hope others will follow suit swiftly. Motorists will be delighted to see the price of unleaded dropping below £1.20 for the first time in four years but the RAC is calling for a further 4p cut in unleaded and 2p cut in the price of diesel to be fair to motorists.”