Retailers are still profiting from historically high petrol prices according to a report by the Competition and Markets Authority (CMA).
The report estimated that drivers paid an additional £1.6 billion for fuel in 2023.
Simon Williams, RAC’s head of policy, said “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.”
He continued, “Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.”
The CMA found that while petrol prices have fluctuated in recent months, the broader trend was one of sustained higher road fuel prices and margins.
While supermarket fuel margins decreased by 1.1% between December 2023 and April 2024, they remain historically high and have changed little since the CMA’s 2023 report.
Similarly, non-supermarket fuel margins also decreased between December 2023 and April 2024, falling from 10.4% to 7.7-8.5%, but remain raised compared to historic levels.
In response to the report, the executive director of the Petrol Retailers Association (PRA), Gordon Balmer said:
“PRA members are committed to keeping pump prices as low as possible and operate in a highly competitive environment which is affected by a range of factors, including cost increases for retailers and geopolitical events. The CMA's analysis does not take these complexities into account. We support any sensible measures that lower prices for consumers [...]”
CMA’s 2023 report recommended that a smart data-driven fuel finder scheme be developed to help drivers find local prices in real-time. A temporary price data-sharing scheme was created in the interim. However, with only 40% of fuel retail sites covered and without the ability to integrate maps and sat-nav, the current scheme is limited in its impact.
A government-backed voluntary scheme and further down the line, legislation such as the Digital Information and Smart Data Bill, could help to provide greater transparency, competition and accountability.
