Drivers 'being ripped off by 14p a litre at the pumps', watchdog says
Greedy petrol retailers are ripping off hard-pressed motorists, the competition watchdog fears, pouring more misery on households amid a raft of bill hikes.
In its latest analysis, the Competition and Markets Authority (CMA) said forecourt margins 'remain high compared to historic levels'.
It found the margins were 13.8p a litre on average for petrol in the four months to March.
While this was just over a penny lower than the previous four-month period, it was more than double the average 6.5p margin from 2015 to 2019.
For diesel, margins were 13.4p a litre on average. This was also lower than the previous period by 2.9p, but more than 50 per cent higher than the 8.6p average from 2015-2019.
Motoring organisations claimed retailers 'continue to drag their feet on passing on savings'.
Greedy petrol retailers are ripping off hard-pressed motorists, the competition watchdog says. The CMA latest report found forecourt margins 'remain high compared to historic levels'
The CMA said retailers' petrol spreads – the difference between pump prices and estimated wholesale costs plus fuel duty, VAT and biofuel – averaged 13.8p per litre in the four months to the end of February.
It stated: 'Retail spreads and margins remain high compared to historic levels, as has continued to be the case for most of the period since our market study.
'The CMA remains concerned about the intensity of retail competition between fuel retailers.'
The CMA previously warned that increased margins compared with 2019 meant UK drivers paid £1.6 billion more for fuel in 2023.
Luke Bosdet, of the AA, said: 'Road fuel costs started to fall in mid-January but it took until the first week of March before pump prices showed any signs of downward movement.
'Today's update from the CMA confirms what was very apparent at the pumps - the fuel retailers continue to drag their feet on passing on savings.'
RAC head of policy Simon Williams added: 'It's disappointing to see that retail fuel margins remain far higher than they used to be because this means drivers still aren't getting fair prices at the pumps.'
The CMA found that fuel retailer margins were 13.8p a litre on average for petrol in the four months to March. While this was just over a penny lower than the previous four-month period, it was more than double the average 6.5p margin from 2015 to 2019
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The CMA was given powers to monitor fuel prices from the start of the year.
The Government is aiming for a fuel-finder service making it easy for motorists to view pump prices in their area will be launched by the end of 2025.
Mr Williams went on: 'Both of these new measures will be judged on how effective they are at delivering greater transparency and fairer fuel prices for the UK's 43 million drivers.'
Dan Turnbull, CMA senior director of markets, said: 'While there are several factors contributing to the higher fuel prices seen in recent months, fuel margins remain stuck at high levels which impacts prices paid by drivers at the pump.
'The fuel finder scheme set to launch this year should be a game changer for drivers, allowing them to find the cheapest fuel prices while boosting competition between fuel retailers.'
Average pump prices for petrol yesterday were 135p a litre, while diesel was 142p.
