Drivers continue to overpay for fuel as retail margins remain “significantly” above historical levels, according to the Competition and Markets Authority (CMA).
A year after criticizing the market for failing customers, the CMA reports little progress. Retailers’ fuel margins—the difference between their purchase price and selling price—remain notably higher than historical averages.
Increased fuel margins cost drivers over £1.6 billion in 2023 alone, with supermarket fuel margins approximately double those of 2019.
CMA chief executive Sarah Cardell stated:
“Last year, we found that competition in the road fuel market was failing consumers and published proposals to revitalize competition among fuel retailers.
One year on, drivers are still paying too much. We aim to work with the government to implement our recommendation for a real-time fuel finder scheme to boost competition among retailers.
This initiative will empower drivers to compare fuel prices wherever they are, sparking greater competition.”
Following the competition watchdog’s report revealing that drivers are still overpaying for fuel, RAC head of policy Simon Williams commented:
“This third report from the CMA confirms our worst fears. Seeing that drivers have paid £1.6 billion more than they should have over the past year is nothing short of outrageous, especially when so many rely on their vehicles. Drivers have every right to feel ripped off, knowing there is virtually no competition among retailers.
The report reaffirms what we have long known and campaigned against for years. Our analysis consistently shows that even considering retailers’ increased operating costs, fuel margins remain at highly questionable levels.
The CMA’s recommendations are clear. We have already written to the new energy secretary, urging swift implementation of these recommendations. This includes greater transparency of fuel prices from all retailers and, most importantly, the establishment of a price monitoring body that can take decisive action against retailers whenever drivers are overcharged. This can’t happen soon enough.
