The price of petrol is still too high and cuts in oil prices are not being passed on to motorists, the head of a motoring campaign group has said.
AA president Edmund King said prices were 2p higher than they should be and that oil companies had been ‘too slow’ in passing the drop in the oil price on to customers.
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Prices at the pump
Mr King told ITV news: ‘One element is the pound is weaker against the dollar but that doesn’t account for it all it only counts for about 10 per cent.
‘Oil companies have been quite slow in passing it on to the consumer. By our calculations we estimate the price at the pump should be two pence less than it is at the moment.’
Because the pound is at a two-and-a-half-year low against the dollar, the wholesale cost of petrol and diesel – priced in dollars – has increased.
Average petrol prices peaked at 119.7p per litre for unleaded and 133.25p for diesel in mid-July but at the end of last weekend, these stood at 112.33p and 123.75p respectively.
Any further falls in prices may also be curtailed by the Organisation of Petroleum Exporting Countries oil cartel, which has signalled it may take action to defend the 100-dollars-a-barrel level when it meets on September 9.