Drivers are still paying too much money for their petrol and diesel costs, with major retailers and supermarkets taking advantage of motorists.
The report from the Competition and Markets Authority outlined that increases in retail fuel margins cost drivers more than £1.6billion last year.
It found that retailers’ fuel margins are still “significantly above historic levels”, while supermarkets’ fuel margins are around double what they were in 2019.
The CMA also found that competition among retailers and supermarkets had been failing consumers, with drivers having to deal with unfair prices.
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Drivers were overcharged more than £1.6billion at the pumps last year
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The previous road fuel market study report suggested that a fuel finder scheme should be introduced to help motorists find the cheapest fuel in their area in real-time through map apps and sat navs.
Experts have continually called for new measures to help drivers save at the pump and boost competition among filling stations to lower prices.
It has been estimated that a fuel price checker scheme could save drivers up to £4.50 each time they fill up, bringing significant savings over the course of a year.
Under Rishi Sunak, the Conservative Government pledged to introduce such a scheme to help motorists, although there has not been an update regarding whether it will be launched.
The CMA has created a temporary price data-sharing scheme, although it only covers around 40 per cent of fuel retail sites and cannot be used by motorists via map apps or sat navs.
However, the organisation was boosted by the passing of the Digital Information and Smart Data Bill which it says could lead to the creation of a “compulsory and comprehensive” scheme to help drivers.
Sarah Cardell, chief executive of the CMA, said many people were still struggling to fill up at the pumps despite inflation falling to two per cent.
She added: “Last year we found that competition in the road fuel market was failing consumers, and published proposals that would revitalise competition amongst fuel retailers.
“One year on and drivers are still paying too much. We want to work with Government to put in place our recommendation of a real-time fuel finder scheme to kick-start competition among retailers.
“This will put the power in the hands of drivers who can compare fuel prices wherever they are, sparking greater competition.”
The latest data from RAC Fuel Watch shows that a litre of unleaded fuel now costs 145.69p, while diesel drivers are facing costs closer to £1.51, with prices failing to fall significantly over the last few months.
While the fuel price checker does forecast these prices to fall, many are still paying more expensive costs because of the lack of competition and knowledge about where they can access cheaper costs.
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Experts are continuing to call for a pump price checker
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Commenting on the latest data from the CMA, Simon Williams, head of policy at the RAC, said the research contains “many findings that we feared”.
He continued, saying: “To see that drivers have paid £1.6billion 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 report is, once again, confirmation of what we have known and been campaigning against for many years. Our analysis has long shown that even accounting for retailers’ increased operating costs, margins on fuel are at extremely questionable levels.”