UK Drivers Being Overcharged as Fuel Prices Fail to Track Oil Market, Watchdog Finds
The Competition and Markets Authority (CMA) has found that fuel prices in the UK have not fallen in line with wholesale costs since the end of November, pointing to weak competition in the sector. Analysis revealed that operating costs do not explain the persistently high fuel margins.
According to CMA data, fuel margins remain elevated compared to historical levels, with non-supermarket retailers in particular maintaining significantly high margins. The AA highlighted that wholesale petrol costs fell by more than 7p per litre since November's end; with VAT this should have translated to around an 8.4p per litre or approximately £4.60 per tank decrease. However, average pump prices only rose by roughly 0.66p per litre in response.
The RAC noted the CMA's rejection of retailers' claims that increased operating costs justify the high prices. Currently, petrol and diesel prices stand at about 135p and 142p per litre respectively, each down roughly 8p per litre year on year, assisted by lower crude prices, exchange rates, and refining costs.
In response, the CMA plans to launch a 'fuel finder' scheme next year, which will allow consumers to access real-time price comparisons through apps and price websites. The watchdog had expressed serious concerns over overcharging by fuel retailers in September and has now produced a detailed assessment of the pricing dynamics.
