Drivers May Have Been Overcharged for Fuel During Lockdown

Millions of drivers may have been over charged for petrol by as much as £10 per tank during lockdown, according to a recent investigation.

In April, as the pandemic forced lockdowns across the world, petrol prices plunged downward, the BBC reported. U.S. crude oil went into negative values.

However, consumers may not have been charged fair petrol prices during the 2020 oil crash, Mirror reported.

At the height of the lockdown, millions of drivers have allegedly been overcharged by up to £10 per tank of petrol, the Daily Mail reported.  Supermarket chain fuel prices decreased to a four year low at 99p a litre in May, but fuel companies have still made millions. 

A Which? investigation found that some large filling stations saved millions during the lockdown.

The Which? examination also found that petrol companies have doubled profit margins but the savings were not passed on to fuel consumers.

The sinking wholesale fuel prices were significantly decreased, and yet, petrol stations still charged 18p a litre more than was necessary, according to a Daily Mail report. An overcharge of 18p a litre could equal around £10 per 55-litre tank of fuel.

Luke Bodset of the AA said the average petrol price remained high because petrol stations needed to charge 10p or more to compensate for selling less fuel during the lockdowns, Which? reported.

According to Which?, the price of oil decreased to a 21-year low in April. Crude oil in the U.S. dove to a $20 a barrel, falling from $69 a barrel in January.

As a result, there was a significant reduction in the price of wholesale fuel. 

However, in March 2020, profit margins rose significantly compared with the previous year, according to Which? In 2019 there was a 4% margin per litre; in April 2020 the margin was 17%. 

Some angry campaigners have said that drivers are being cheated by the fuel prices, the BBC reported.

Howard Cox of FairFuelUK told the Daily Mail the fuel suppliers are “immoral” and said drivers have been charged upwards of £20 million a day.

While not all drivers were forced to commute during lockdown, the essential employees were. Cox says essential workers deserve honest petrol prices, especially so the financial burden is not on them while they are helping everyone during the pandemic.

Tory MP Robert Halfon is asking large oil companies to help, according to the BBC.

He says they should assist the government to decrease the cost of expenses and pass their savings onto customers and warns that when the pandemic is over, fuel companies who have majorly profited will be subject to serious consequences.

However, the Prudential Regulation Authority (PRA) denied the claims made by Which?

“The COVID-19 lockdown from late March saw fuel volumes across the U.K. drop instantly and dramatically,” the PRA’s Brian Madderson told Forecourttrader. “Reports of reductions up to 85 to 90% against ‘normal’ levels were noted from smaller independents. This is significantly higher than the BEIS daily average figure, which was closer to 70%. The BEIS daily average still indicates the severity of the business loss to operators.”

Madderson maintains that the fuel industry has been providing excellent service during the coronavirus pandemic, adding: “Filling stations that did not operate on wider margins at this time would have had to close – and many would have closed forever. We support our members in doing what was needed to remain viable businesses to protect their staff and to provide continuing service to their customers, including many NHS and other essential key workers, at a time when so many firms were going out of business.”

According to Which?, it is uncertain if drivers were always being ripped off at fuel retailers, but they say their research seems to indicate savings from falling oil prices did not translate to savings on the customers’ end.

For now, Which? says, there are no rules in place for fuel companies’ margins and there is no fuel regulator to keep an eye on the fairness of petrol prices.

Do you think you were ripped off by fuel stations during the pandemic? Do you think fuel companies should be required to pass their savings onto consumers? Let us know in the comments.

Read More Lawsuit & Settlement News:

Consumer Association Says Banks Treating Transfer Scam Victims Unfairly

Driving With Unrestrained Pet Could Lead to £5,000 Fine, Invalid Insurance

9 In 10 Parents Report Problems with Child Seats In Holiday Hire Cars

Argyll Dance School Closing After Allegations of Sexual Misconduct