Petrol should be 6p per litre cheaper than it actually is, the RAC has said. The road side assistance business has called on forecourts to lower their prices to reflect the fact that wholesale prices on crude oil have been falling since the start of July. It believes the recent fall in the price of oil and the strengthening of the pound – the two biggest factors in determining the wholesale price of petrol and diesel – are not reflected in the current price of fuel.
The average price of petrol in the UK is currently 142p a litre. However, data from RAC Fuel Watch shows the delivered wholesale price of petrol averaged 103p a litre last week. Allowing for a retailer margin of 10p – 2p more than the long-term average of 8p, this should lead to average petrol prices of just under 136p including VAT, RAC argued.
Diesel should be being sold for 139p, rather than the current average of 147p. RAC analysis reveals that the UK has now had the questionable honour of having the most expensive diesel in Europe for 16 of the last 17 weeks, and that’s even with a 5p fuel duty discount. RAC head of policy Simon Williams said: “The biggest retailers’ refusal not to reduce their prices to fairer levels is continuing to cost drivers dear.
“It is all the more outrageous when you factor in that we’re all meant to be benefitting from a temporary 5p cut in fuel duty, that looks likely to disappear in the coming months. “While the Competition and Markets Authority has clearly stated drivers were overcharged last year, it’s blatantly apparent from our data that this problem is persisting this year. “If prices don’t fall dramatically in the next week or so, we believe the government and the CMA should get all the biggest retailers together to demand an explanation.
Tough action needs to be taken to change this as drivers are losing out badly every time they fill up. “Artificially high pump prices also contribute to a higher level of inflation – so if prices were nearer where they should be, inflation would be lower, benefitting borrowers and the wider economy.” Burberry is on course to leave the FTSE 100 index after 15 years amid a collapse in its share price.
The luxury fashion brand’s shares have plunged by more than 50pc over 2024 so far amid a global slowdown in demand for luxury goods - particularly in the crucial Chinese market. It has issued a series of profit warnings over recent months, sparking a rout among investors. It comes after Burberry parted ways with chief executive Jonathan Akeroyd in July after just over two years, drafting in the American fashion executive Joshua Schulman in the hopes of kickstarting a turnaround.
Mr Schulman, previously the chief executive of handbag brand Coach and Jimmy Choo, was handed a so-called “golden hello” worth as much as £9.2m. Thanks for joining us.
Petrol is in the spotlight this morning following calls from the RAC for lower prices. 5 things to start your day 1) Energy companies ordered to protect their customers as Reeves slashes winter fuel payment | Suppliers warned over letting customers run into debt as millions of pensioners lose allowance 2) Saudi Arabia pressures City law firms to hire more of its citizens | International firms scramble to attract talent as Kingdom raises local lawyer quota 3) Why Reeves is betting a Nigel Lawson-style policy will boost economic growth | A capital gains raid may well become the revenue raiser the Chancellor has been looking for 4) How Zuckerberg censored Covid on Facebook | Social media giant regularly bowed to White House pressure to remove anti-vaccine posts 5) Matthew Lynn: Gold is soaring on fears of the economic catastrophe Kamala Harris is about to unleash | A continuation of unchecked spending threatens to put the global monetary system on the path to ruin What happened overnight On Wall Street, the Dow Jones Industrial Average of 30 leading US companies, inched up to another record high on a mixed day of trading for Wall Street. The Dow roses than 0.
1pc, closing at 41,250.50, while the S&P 500 rose 0.2pc, to close at 5,625.
80, and the Nasdaq Composite rose 0.2pc, to close at 17,754.82.
In the bond market, the yield on benchmark 10-year US Treasury notes rose to 3.83pc from 3.82pc late on Monday.
Cryptocurrency bitcoin took the early Asia spotlight, dropping over 6pc after breaking below support around $60,000. But overall moves in the foreign exchange market were muted as traders awaited fresh hints on the state of the world’s largest economy. Equity benchmarks in Japan and Australia edged down, while Treasuries opened higher in early Asian trading.
Australian bond yields were steady ahead of the nation’s monthly inflation data..
