Petrol stations have come under fire after overcharging UK motorists by a staggering £1.6 billion last year, according to the Competition and Markets Authority (CMA).
The regulator’s findings reveal that fuel margins – the difference between the wholesale cost and the pump price – have remained significantly above pre-pandemic levels.
The CMA highlighted that supermarkets were particularly guilty, with their fuel margins roughly double what they were in 2019. This hike in margins cost drivers an additional £1.6 billion in 2023 alone.
Simon Williams from the RAC described the situation as “nothing short of outrageous,” particularly given the reliance many have on their vehicles. “Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers,” he added.
Last year, the CMA’s review of the road fuel market uncovered that competition among petrol stations was insufficient to drive down costs for motorists. Major supermarkets, including Asda, Morrisons, Tesco, and Sainsbury’s, were criticised for treating drivers as “cash cows,” having overcharged them by £900 million in 2022.
To address the issue, the CMA has recommended the introduction of a “pumpwatch” scheme. This initiative would provide real-time fuel price data to drivers via mobile devices and services like Google Maps, potentially saving motorists up to £4.50 per fill-up by making it easier to find cheaper fuel options nearby.
Currently, the CMA is monitoring prices through a voluntary data-sharing scheme. However, only 40% of forecourts have agreed to participate, resulting in incomplete data that is insufficient for use in mapping and navigation applications.
In response, the Government has proposed the Digital Information and Smart Data Bill, aiming to create a comprehensive and compulsory scheme. While this legislation is being developed, the CMA has urged ministers to implement an enhanced interim voluntary scheme to mitigate overcharging in the meantime.
The RAC has also called on Energy Secretary Ed Miliband to expedite the CMA’s recommendations, ensuring that motorists are protected from excessive fuel prices as soon as possible.
Read more:
Petrol Stations accused of overcharging drivers by £1.6bn in 2023