Yahoo Finance Drivers still being overcharged for fuel, watchdog finds
Drivers are still being overcharged for petrol at the pumps despite efforts to improve competition in the fuel market, the watchdog has found.
The Competition and Markets Authority (CMA) found that petrol and diesel prices have been creeping up since January, causing more misery for motorists.
It added that a sustained increase in fuel margins – the difference between what a retailer pays for its fuel and what it sells at – was “concerning”.
Supermarket margins stood at 7.8pc last year, up from 7.6pc in 2022 and just 4pc in 2017. For other retailers, margins were 9.1pc last year, up from 6.4pc in 2017.
The Government is consulting on fuel prices and has proposed a nationwide “pumpwatch” scheme that would allow drivers to access real-time price data on mobile devices and through services such as Google Maps.
The CMA has begun collecting data from supermarkets and forecourt operators including Asda, BP, Morrisons, Sainsbury’s and Shell.
But the interim scheme remains voluntary and the regulator called on ministers to push ahead with a statutory system to help drive greater competition.
The CMA’s report found that fuel fell by roughly 14p per litre between late October and late January.
However, petrol and diesel prices increased by 5p and 6p per litre respectively to the end of February, driven largely by rising crude oil prices.
The escalating conflict in the Middle East and disruptions to shipping caused by Houthi attacks in the Red Sea have pushed up wholesale prices since the start of the year.
The CMA last year accused Asda, Morrisons, Tesco and Sainsbury’s of using motorists as “cash cows” after it found drivers were overcharged by £900m in 2022 alone.
It comes amid turmoil at Asda and forecourt business EG Group, which are both owned by the billionaire Issa brothers.
The pair have slashed their investment in EG Group and are now attempting to disentangle their fortunes as they grapple with hefty debts in their empire.
Dan Turnbull, senior director of markets at the CMA, said: “Drivers are feeling the pinch as fuel prices have been edging up since January. We’re particularly concerned by high margins which indicate weakened competition and are not a good sign for drivers.
“Today’s report reinforces the need for Pumpwatch and statutory powers to be in place as soon as possible, to ensure competition is effective in this market and to get a better deal for UK drivers.”
