The UK's Competition and Markets Authority has reported that road fuel retailers are maintaining "persistently high" profit margins that cannot be explained by operating costs. The findings suggest weak competition in the sector is preventing pump prices from falling as much as they should, potentially overcharging motorists.
The CMA's first annual road fuel monitoring report contradicts claims by supermarkets and other fuel retailers that rising margins are due to operating cost pressures. Despite a year-on-year fall in prices at the petrol pump, retailers' profit margins have been rising over the past year.
Dan Turnbull, senior director of markets at the CMA, said: «Fuel margins remain at persistently high levels – and our new analysis shows operating costs do not explain this.» He added: «This indicates competition in the sector is weak – if it was working well, drivers could see lower prices at the pump.»
Fuel Finder Scheme
The Government is pressing ahead with the launch of a new "fuel finder" scheme in 2026. The scheme will enable drivers to compare real-time fuel prices across different retailers.
Turnbull emphasized the importance of the initiative: «We know fuel costs are a big issue for drivers, especially at this time of year with millions making journeys across the country.» He explained: «This is why the fuel finder scheme is crucial – it will put power back in the hands of motorists and save households money.»
The CMA confirmed it will take action against retailers that fail to provide data for the fuel finder scheme. The watchdog aims to ensure compliance to make the price comparison tool effective for consumers.
Note: This article was created with Artificial Intelligence (AI).
