The UK’s competition watchdog has issued a warning that drivers are still being charged too much for fuel, which cost them a total of £1.6bn last year, citing weakened competition in the fuel sector. The Competition and Markets Authority (CMA) found that supermarkets’ profit margins had doubled since 2019. CMA’s chief executive, Sarah Cardell, told the BBC’s Today programme that drivers are continuing to pay too much for road fuel.
The CMA began probing the road fuel market last year and issued a number of recommendations to help drivers manage the cost of refilling their vehicles. Among them were the introduction of a fuel finder scheme that would assist motorists in locating the most affordable gasoline in their vicinity using map apps and sat-navs.
Ms Cardell stated, “One year later, drivers are still paying too much.” The watchdog discovered that supermarkets are charging twice as much as they did in 2019 for margins, thanks to decreased competition in the fuel sector, resulting in drivers paying more.
While fuel prices have increased since 2019 due to a combination of factors such as the Brexit transition and fluctuating oil prices, the majority of the increase can be attributed to weaker competition among retailers, according to CMA. It is urging the UK government to consider proposals that would enable independent petrol stations to compete with supermarket chains by establishing a fuel pricing regulator
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