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UK drivers continue to be overcharged for their fuel, as the retail margins remain “significantly” higher than historical rates, according to the UK Competition and Markets Authority (CMA).
The CMA disclosed that the fuel market remains skewed against consumers even after a year from its first revealing report on the sector’s issues.
According to the competition watchdog, retailers’ fuel margins the difference between their buying price and selling price still substantially exceed old levels.
The elevation in fuel margins cost motorists greater than £1.6 billion solely in 2023, with supermarket fuel margins now nearly double compared to those in 2019, the CMA elaborated.
The RAC motoring group clarified how drivers feel “ripped off” by fuel retailers.
Simon Williams, Policy Head at the RAC, expressed: “To see that drivers have paid £1.6 billion more than they should have in the last year is nothing short of outrageous, especially when so many are dependent on their vehicles.”
He further commented, “Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.”
The CMA is currently urging the Government to deploy recent laws to initiate a mandatory scheme ensuring fuel retailers provide price information to enable motorists to compare forecourt offers.
Despite implementing a provisional price data-sharing scheme following its initial report identifying industry problems, the CMA reported it is voluntary and only covers 40% of UK fuel retail sites.
Sarah Cardell, the Chief Executive of the CMA, expressed her concerns: “Last year we found that competition in the road fuel market was failing consumers, and published proposals that would revitalise competition amongst fuel retailers.”
She added, “One year on and drivers are still paying too much.”
In an attempt to rectify this, she stated, “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.”
She believes, “This will put the power in the hands of drivers who can compare fuel prices wherever they are, sparking greater competition.”
The CMA suggested that a smart data, real-time fuel finder scheme could allow motorists to save up to £4.50 each time they fill up and make it easier to find cheaper forecourts. The authority declared, “The proposed introduction of the Digital Information and Smart Data Bill by the new Government could provide the legislative basis to set up a compulsory and comprehensive scheme… which the CMA would welcome.”
However, they also acknowledged, “Legislation which is needed to establish the scheme fully may take time to come into force.”
In order to expedite benefits for motorists, the CMA urged, “So that motorists can start to benefit from quicker, easier access to fuel prices through everyday apps sooner, the CMA encourages the Government to introduce an enhanced interim voluntary scheme that is as close to the final scheme as possible.”
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