Watchdog Reports Rising Fuel Margins Amid Weakened Competition

The Competition and Markets Authority calls for immediate action to address overcharging at the pumps and foster fairer fuel pricing.

The Competition and Markets Authority (CMA) found that fuel margins, the difference between what retailers pay for their fuel and the price they sell it at, have been rising, indicating weakened competition in the fuel market.
Despite a temporary decrease in fuel prices from late October to late January, prices for petrol and diesel have increased again, influenced by rising crude oil prices and geopolitical tensions in the Middle East.
The CMA has called for the implementation of a nationwide 'Pumpwatch' scheme, which would allow drivers to access real-time price data, to foster greater competition and ensure fairer pricing for consumers.
Supermarket fuel margins increased from 4% in 2017 to 7.8% in 2023, while other retailers saw their margins rise to 9.1% last year, highlighting the issue of drivers being overcharged.
The CMA's ongoing investigation and call for statutory powers to enforce competition underscore the need for immediate action to address the high fuel margins and ensure a better deal for UK drivers.