The cost of petrol has hit a new record high in the UK despite wholesale prices falling. Motorists are paying around an average of 121.6 pence per litre, despite a drop equivalent to 2p a litre in the wholesale price of petrol in north-west Europe. The Automobile Association warned that the fall in prices had not been passed on to UK drivers. Instead the price they pay at the pumps has increased from 109.88p a litre at the start of the year and an average of 111.8p in January. Figures posted by petrolprices.com show that drivers in Scotland are charged among the highest prices. In Shetland, a litre of unleaded petrol can cost as much as 131p, while in Wick it reaches 125p and in Inverness 124.9p. Prices also reach 123p per litre in Glasgow and Edinburgh. The AA said that the rise to record levels had pushed the monthly fuel costs for a family with two cars up by £24.91 since January, to £258.23. AA president Edmund King said: “We know that record prices have squeezed profit margins for many independent retailers but would urge them to pass on whatever savings they can, partly because a fall in pump prices may bring back some of the 10 to 20% lost custom in recent months. “As for the supermarkets, we hope that they will pass on savings directly to the pump and not use them to discount elsewhere. “Realistically, the volatility of stock markets and currencies mean that we have to be prepared for wholesale prices to go back up again. But, after a week of lower wholesale prices, drivers would consider it unacceptable profiteering if at least some of the saving wasn’t passed on to them.” The price of a barrel of oil crept up from $74.78 in February to $84.1 in April and the price of a litre of petrol rose over the same period from 112.1p to 119.7p. But barrel prices have now dropped to around $78.4. The AA said that the wholesale price of petrol in north-west Europe had dropped by 6% and this resulted in a fall equivalent to 2p per litre over the last 10 days, from 40p to 38p. The drop would have been as much as 3p a litre if the exchange rate against the dollar had not fallen. The new Government has said it is committed to consulting on a Tory manifesto “fair fuel stabiliser” plan, which involves fuel duty – the amount of tax included in the price drivers pay at the pumps – going down if fuel prices rise and fuel duty rising if fuel prices fall. The AA said that it hoped the consultation would lead to a clear understanding of exactly what constituted fuel prices, as the world price of oil was different from the wholesale cost of petrol. RAC motoring strategist Adrian Tink said: “We heard that the new Government wants to end the war on motorists. Well, that needs to start at the forecourt. “These continued record pump prices highlight the plight of motorists now paying well in excess of £5.50 a gallon to go about their daily lives. “While the volatility of currencies and stock markets are beyond their control, the level of fuel duty we pay in this country is not. “There are further planned rises in duty planned for October and January, and at the very least they should be scrapped.”

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