UK motorists still being overcharged for fuel, says watchdog | Competition and Markets Authority

British drivers are still being overcharged for fuel, with drivers paying £1.6 billion more than they should have last year, according to the competition watchdog.

the Cost of Living ReportThe Competition and Markets Authority (CMA) concluded that petrol pump prices remained too high and that a lack of adequate competition between fuel retailers was “failing consumer expectations”.

The report said retailer fuel margins – the difference between what retailers pay for fuel and what they charge drivers – “remain significantly above historical levels”, with supermarket margins roughly double what they were in 2019.

As a result, motorists will pay £1.6 billion more for petrol and diesel in 2023 compared to 2019 margins, the CMA found. This is an increase of £700 million on the extra £900 million found in 2022.

CMA chief executive Sarah Cardell said the findings were “worrying” and warned that “high road fuel prices are putting pressure on households and businesses”.

The watchdog said it emphasised the need for a legally binding fuel search regime, which would allow motorists to access real-time on-road fuel prices at each petrol station on their satellite navigation systems, map apps and fuel search apps.

Last year, the CMA found that motorists are paying more for petrol and diesel than they were before the pandemic because competition was “lessened”. In January, the government announced plans to force fuel retailers to share near real-time information on price fluctuations at petrol stations to help motorists find the cheapest petrol and diesel.

Simon Williams, the RAC’s head of policy, said: “It’s outrageous that drivers paid £1.6 billion more than they should have last year, especially when so many people are reliant on their cars. Drivers are understandably feeling cheated, especially when they find there is virtually no market competition between retailers.”

“The CMA could not have been clearer about what is required,” Williams added. “We have already written to the new Energy Secretary urging him to implement its recommendations as soon as possible.”

“This means greater transparency on fuel prices from all retailers and, most importantly, the creation of a price monitoring body that can take firm action against retailers if motorists are overcharged. This is something that needs to happen urgently.”