Drivers in the UK are still paying over the odds for petrol and diesel, according to an update from the Competition and Markets Authority (CMA).
The competition body has been monitoring the market for road fuel, as well as groceries and infant formula, amid ongoing cost of living pressures.
It found that retailers’ profit margins — the difference between the price they pay suppliers for fuel and what they charge motorists — are still “significantly above” historic levels. Supermarkets’ fuel margins are double what they were in 2019.
These higher prices cost motorists over £1.6bn in 2023 alone.
The CMA recommended last year that a fuel finder scheme be set up to make prices available to motorists across the UK in real time, such as through map apps and sat-navs. It’s estimated that this could save drivers up to £4.50 each time they fill up, as it would make it easier to find cheaper fuel in their area.
A temporary price data-sharing scheme has been created by the CMA, using information provided voluntarily by fuel retailers, but it covers only 40% of forecourts. Legislation is needed to establish the scheme fully, which could take time to come into force, so the CMA wants the government to introduce an enhanced interim voluntary scheme that is as close to the final scheme as possible.
“Last year we found that competition in the road fuel market was failing consumers, and published proposals that would revitalise competition amongst fuel retailers,” said Sarah Cardell, chief executive of the CMA. “One year on and drivers are still paying too much.
“We want to work with government to put in place our recommendation of a real-time fuel finder scheme to kick-start competition among retailers. This will put the power in the hands of drivers who can compare fuel prices wherever they are, sparking greater competition.”
