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Petrol and diesel prices slashed by 14p at Costco fuel stations across the UK

Costco, the only organic retailer, has responded to lower wholesale market prices by slashing its petrol by 8p per litre, to 147.7p per litre, today. That’s 12p less than the average price of a liter bought in a supermarket and 14p less than the UK average, which the RAC says is 161.9p.

Diesel at Costco is also on sale in the 19-yard-forward averaging 171.6p – nearly 14.5p less than the UK average and 12p cheaper than a liter at the ‘big four’ supermarket, which is around 159.9.

One Costco petrol station, in Chester, offers unleaded petrol at 142.9p a litre, and diesel fuel costs just 166.9p.

RAC Fuel Watch predicts that petrol and diesel prices should “fall sharply” in the coming days and weeks following concerns that drivers could see costs rise near the end of the year.

Earlier this week, the RAC called on the “big four” supermarkets – Asda, Morrisons, Sainsbury’s and Tesco – to cut their prices.

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The organization called on them to do so in response to falling wholesale costs and to help drivers hit all-time record fares this year.

Simon Williams, a fuel spokesperson for the RAC, said the move by Costco to cut prices shows just how high fuel prices are elsewhere.

He added: “There is no doubt that drivers who are unlucky enough to be a Costco member will be horrified to see how cheap fuel can be sold.

“No wonder you often see long lines for fuel at Costco. In fact, they recently had to change the queuing system in their forecourt in Bristol to deal with the number of people wanting to fill the positions.

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“Even accepting that Costco operates on very thin profit margins, supermarkets should lower their prices,” he told Fleet News.

Williams says the fact that petrol and diesel can be sold for 12p less per liter than what is currently charged on average at the Big Four supermarkets is worrying.

The retailer has 19 forecourts across the UK including Birmingham, Edinburgh, Liverpool, Manchester and Southampton.

The RAC constantly urged drivers to shop, as smaller independent forecourts usually offer more competitive prices than department stores.

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Asda has long been the most aggressive supermarket in terms of fuel prices, but while it’s still cheaper than the Big Four, it seems less keen on cutting prices in the wholesale bear market than it has in the past.

Mr Williams continued: “On Tuesday this week we asked them to cut 5p a litre but since then wholesale costs have fallen further, so they should cut by at least 7p.

“Given the huge gap between wholesale fuel prices and the averages charged by supermarkets, it could be argued that drivers are being denied the benefit of the government’s 5p reduction in tariffs.

“This is unfair and we hope it will be duly noted by both the government and the Competition and Markets Authority which is currently investigating fuel retail in the UK.

“Other than trying to fill in cheaper, there is very little drivers can do to avoid paying more than they should in a cost-of-living crisis.”

The RAC highlighted the UK fuel price abroad, noting that petrol averages just 158p and diesel at £1.66 a litre.

Across the Channel in France, unleaded costs 148p a liter although petrol has a duty of 61p a litre, while diesel is currently 53p – the same as the UK, a liter costs only 159p on average.

There have been calls from many, including former Transport Secretary Anne-Marie Trevelyan, for the implementation of a fuel price check for UK petrol stations to promote consistency and competitiveness with prices.

Drivers in Northern Ireland benefit from the Consumer Council’s Fuel Price Checker which compares petrol and diesel prices across the counties, showing the average, cheapest and most expensive fares.

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