Petrol stations have failed to pass on the fuel duty savings announced by the chancellor in his spring statement, new data has shown.
According to the AA, petrol prices have fallen just 2.71p, and diesel was down 1.59p, despite Rishi Sunak saying on Wednesday a 5p fuel cut would come into force immediately.
Research from the motoring organisation found the average petrol price across the UK was 164.59p a litre while diesel was 178.72p a litre after the government’s reduction came into effect.
This is a slight decrease from Tuesday, when petrol and diesel pump prices jumped to new records of 167.30p and 179.72p a litre.
Mr Sunak had said on Wednesday that fuel duty would from 6pm that day be reduced by 5p, worth 6p once VAT is added, until March 2023.
Luke Bosdet, the AA’s fuel price spokesman, said: “The chancellor rode to the rescue of drivers on Wednesday and, even before the 6pm start of the fuel duty cut, drivers were reporting the price cut at some Asda forecourts.
“However, on Thursday, the average price of petrol showed that less than half (2.71p) of the fuel duty cut had been passed on to drivers.”
It comes after drivers have faced record pump prices since Russia’s invasion of Ukraine led to an increase in the cost of oil.
The chancellor promised to ease the burden on motorists by announcing the biggest reduction to fuel duty rates “ever”.
He told MPs on Wednesday: “Today, I can announce that for only the second time in 20 years, fuel duty will be cut.
“Not by one, not even by two, but by 5p per litre.”
The RAC criticised the chancellor for not going far enough, with head of policy, Nicholas Lyes, describing the cut as “a drop in the ocean” as it will “only take prices back to where they were just over a week ago”.
While Mr Bosdet said we have to accept that, for many forecourts, the duty cut will come through with the next delivery of fuel, he agreed the size of the fall is very disappointing.