PETROL stations in County Durham have been accused of ‘cheating the system’ after allegedly failing to pass on fuel duty cuts in full, despite chancellor Rishi Sunak’s spring statement last week.
Last Wednesday (March 23), Mr Sunak used his spring statement to reduce fuel duty by 5p per litre – in an attempt to ease the public’s worries over the cost of living crisis.
In total, the Government’s announcement should have led to a real-time saving of 6p per litre – owing to the impact on VAT.
However, five days on from the Chancellor’s announcement and several fuel stations, both in County Durham and across the country, have failed to alter their prices accordingly.
Read more: County Durham and Darlington supermarkets slash fuel prices
One resident, who wished to remain anonymous, contacted The Northern Echo about a “greedy” petrol station on the County Durham coast that had failed to pass on the 5p fuel duty discount.
They said: “This fuel station has not passed on the 5p reduction in fuel as per the chancellors’ statement yesterday. Apparently, the chancellor wants to reduce it by 5p, but he didn’t say when. Also, I was told it is company policy not to pass on the reduction. I really think the public should be made aware of this - it’s sheer greed.”
According to figures from data firm Experian Catalist, the average price of a litre of petrol at UK forecourts has fallen by just 3.7p per litre.
On Sunday, the average price per litre was 163.6p, compared with 167.3p on March 22.
Meanwhile, the average price of diesel fell by 2.4p per litre over the same period, from 179.7p to 177.3p.
AA fuel price spokesman Luke Bosdet said: “Why are drivers not surprised that on average a third of the petrol saving has yet to be passed on at the pumps?
“The fuel trade always disputes the accusation that pump prices shoot up like a rocket and fall like a feather. Now we know the truth.”
Mr Bosdet said the Treasury “must have expected more from UK forecourts”.
RAC spokesman Rod Dennis said: “Drivers will be disappointed that prices haven’t come down further since last week’s fuel duty cut.
“As duty is charged on the wholesale cost of fuel, it’s the case that some retailers will be waiting for new deliveries to buy fuel in at the cheaper rate – meaning drivers will have to wait to see the benefit at the pumps.
“What happens to the oil price, and in turn wholesale costs, in the coming days will be crucial. If prices rise, there’s a risk the fuel duty cut will be cancelled out as retailers face higher costs.”
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