Petrol stations have been branded “outrageous” after overcharging British motorists by £1.6bn last year.
The Competition and Markets Authority (CMA) found that petrol stations’ fuel margins – the difference between what a retailer pays for its fuel and what price it sells it at – remain significantly above historic levels.
The regulator said the price mark-up was particularly stark at supermarkets, whose fuel margins are roughly double what they were in 2019.
The CMA said the total cost to all drivers from the increase in fuel margins was £1.6bn in 2023 alone.
Simon Williams, of RAC, 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.
“Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.”
The CMA carried out a review of the road fuel market last year, which found that competition among petrol stations was failing to reduce costs for drivers.
It accused Asda, Morrisons, Tesco and Sainsbury’s of using motorists as “cash cows” after it found drivers were overcharged by £900m in 2022 alone.