Motorists are paying out more for petrol and diesel than necessary due to “stubbornly high” margins, the competition watchdog has warned.
The Competition and Markets Authority (CMA) flagged that fuel margins are sticking above traditional levels, sparking worries about a slump in sector competition. Figures revealed by the CMA show supermarket fuel margins jumped from 7% in April to 8.1% in August, while margins at non-supermarket pumps climbed from 7.8% to 10.2% over the same period.
The “sustained” increase in the level of fuel margins was concerning, and suggested that overall levels of competition in the road fuel retail market remained weakened.
Dan Turnbull, senior director of markets at the CMA, said: “While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins. We therefore remain concerned about weak competition in the sector and the impact on pump prices. With that in mind, we are pleased the Government is progressing with our recommendations.”
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He emphasised the benefits of the proposed measures: “These measures will empower drivers to find the cheapest fuel prices wherever they are in the UK, increase competition and support the economy – the more people save on fuel, the more they have to spend in other areas.”
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