CMA report shows drivers still overcharged at fuel pumps across the country

26th Jul 2024

The Competition and Markets Authority (CMA) has released its latest update on the state of the UKs fuel industry – and it has revealed the shocking cost to drivers.

The total cost to all drivers from the increase in retail fuel margins since 2019 was over £1.6bn in 2023 alone.

This shows that retailers’ fuel margins, the difference between what a retailer pays for its fuel and what it sells at, are still significantly above historic levels.

According to the CMA, the fuel margins for the UK’s top supermarkets were roughly double what they were in 2019.

RAC head of policy Simon Williams said: “This, the third report from the CMA, contains many findings that we feared.

“To see that drivers have paid £1.6bn more than they should have in the last year is nothing short of outrageous, especially when so many are dependent on their vehicles.

“Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.

“The report is, once again, confirmation of what we have known and been campaigning against for many years.

“Our analysis has long shown that even accounting for retailers’ increased operating costs, margins on fuel are at extremely questionable levels.

“The CMA couldn’t be any clearer about what needs to happen. We have already written to the new energy secretary, urging him to implement its recommendations as quickly as possible.

“This means greater transparency of fuel prices from all retailers and, most importantly of all, a price monitoring body that can take decisive action on retailers whenever drivers are overcharged. This can’t happen soon enough.”

Sarah Cardell, Chief Executive of the CMA, commented: “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.

“Last year we found that competition in the road fuel market was failing consumers, and published proposals that would revitalise competition amongst fuel retailers.

“One year on and drivers are still paying too much. 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.”