According to the RAC, supermarkets have reduced the price of diesel by more than 7p per litre since the UK's competition watchdog warned it would investigate retail executives regarding unnecessary high forecourt prices.
The motoring group discovered that the average diesel price decreased by 7.44 p per litre, from 151.02p to 143.58p, in the past two weeks after the Competition and Markets Authority (CMA) expressed concern that retailers were earning "sustained higher margins" from diesel sales. After the CMA pledged last month to "get to the bottom" of higher-than-anticipated diesel pump prices, supermarkets hastened the pace of their diesel price reductions, which had lagged behind the decline in energy markets in recent months.
However, the motoring group claimed that large retailers, including supermarkets, could reduce average diesel prices by a further 6p per litre to 137p and still maintain a profit margin higher than the long-term average of 7p per litre.
Under the scheme, all households were eligible for up to £400 in support, which cost the government £11.5bn. However, this support will not be available during the upcoming winter, indicating that consumers are unlikely to experience significant relief despite the recent decrease in prices.