British motorists are being ‘ripped off’ at petrol stations, according to the AA, as falling oil prices are not being reflected at the pumps.
Both the US and UK oil markets have plummeted to record lows this week, as the demand for the commodity has been badly hit by the coronavirus lockdown. The price of UK oil has fallen by more than 10% to around £13 a barrel, following the high profile troubles facing the industry in the USA.
On Monday, the price of US oil turned negative for the first time in history, meaning that oil producers are currently paying buyers to acquire the oil, over fears that storage capacity for the commodity could run out next month.
Oil firms across the world have turned to hiring tankers to store the excess barrels.
The AA believes, that as a result of this week’s price for oil, drivers are being overcharged by more than £5 a tank.
A statement from the AA read: “Questions will be asked about the fairness of pump prices during the great oil crash of 2020.”
The average pump price for unleaded petrol is currently around the £1.10 mark – however, the AA reckons the pump prices should be about £1 a litre.