Increases in retail fuel margins cost drivers over £1.6bn in 2023, says CMA

Drivers are still paying too much for fuel as increases in retail fuel margins cost drivers over £1.6bn in 2023, according to the Competition and Markets Authority (CMA).

Retailers’ fuel margins are still significantly above historic levels while supermarkets’ fuel margins are around double what they were in 2019.

Sarah Cardell, Chief Executive of the CMA, said: “At a time when household budgets are under huge strain, it’s our job to make sure people can be confident they are getting good deals and that they are not being harmed by weak competition or unfair sales practices.

“Despite inflation falling to 2%, many people are still struggling to pay for everyday items – whether it’s filling up at the pump, buying groceries, feeding babies, treating ill pets, or having somewhere to live.”

The CMA’s road fuel market study report a smart data driven fuel finder scheme to be set up to make prices available to motorists across the UK in real time, through map apps and sat-navs.

This scheme could save drivers up to £4.50 each time they fill up.

The CMA has created a temporary price data-sharing scheme and while some major players have started to integrate this, the current scheme covers only 40% of fuel retail sites.

Legislation is needed to establish a compulsory scheme. The proposed introduction of the Digital Information and Smart Data Bill by the new government could be the way towards this.

The CMA wants the government to introduce an enhanced interim voluntary scheme so motorists have easier access to fuel prices through apps sooner.

“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,” added Cardell.