Fuel retailers are being urged to “do the right thing” and cut prices at the pumps on the back of a dramatic dip in the wholesale price of petrol in recent days.

Retailers could slash 6p a litre off petrol and at least 4p off diesel, as a result of wholesale price drops

While drivers are currently paying record petrol prices of 147.27p a litre, RAC data indicates that retailers could slash 6p a litre off this, saving drivers £3.50 a tank on average.

And at least 4p a litre could be shaved off the price of diesel, which currently stands at an average of 150.66p.

Alongside the reductions in the wholesale price of petrol and diesel, there’s also been a big drop in the wholesale cost of their bio components which now account for up to 10% of composition – and this alone should lead to a 2p a litre reduction in the price drivers pay at the pumps.

The RAC has urged the big four supermarkets – responsible for selling 45% of all the country’s fuel – to take action first, as they are constantly buying new supply and are able to pass on the savings to customers straightaway.

Fuel spokesman Simon Williams said: “The longer they hold off doing the right thing, the more money they make on every litre they sell and the worse off drivers are.”

Its data shows retailers had already increased margins during the pandemic by 2p a litre from the norm of 5p to 7p. The drop in wholesale prices now means they’re averaging more than 10p a litre – at a time when many drivers are struggling financially because of the inflated cost of filling up.

“Unfortunately, the biggest retailers appear to have failed the transparency test as they are continuing to move prices up when they should now be doing the opposite just because there’s public acceptance that energy prices are rising. This isn’t acceptable but sadly consumers have no power to object. It’s also the case that no one is watching fuel prices as closely as the RAC which is why we’re highlighting the issue.”