UK drivers are still being overcharged for fuel, according to the competition watchdog, which said motorists shelled out £1.6bn more than they should have last year alone.
In its cost of living report, the Competition and Markets Authority (CMA) concluded that prices at the pump were still too high, and that the lack of proper competition among fuel retailers was “failing consumers”.
Retailers’ fuel margins, which are the difference between what a retailer pays for fuel versus what is charged to drivers, are “still significantly above historic levels”, the report said, with margins at supermarkets roughly double what they were in 2019.
That left motorists paying £1.6bn more for petrol and diesel in 2023 when compared with margins in 2019, the CMA revealed. That is a £700m jump up from the £900m in extra charges discovered for 2022.
The CMA chief executive, Sarah Cardell, said the findings were “concerning” and warned: “High road fuel prices put pressure on households and businesses.”
The watchdog said it reinforced the need for a legally binding fuel finder scheme, which would give drivers access to live, station-by-station road fuel prices on satnavs, map apps or fuel finder apps.
Last year the CMA found that drivers were paying more for petrol and diesel than before the Covid pandemic because of “weakened” competition. In January, the government announced plans to force fuel retailers to share near-live information on price changes at the pump to help drivers find the cheapest petrol and diesel.
The RAC’s head of policy, Simon Williams, 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 couldn’t be any clearer about what needs to happen,” Williams added. “We have already written to the new energy secretary, urging him to implement its recommendations as quickly as possible.
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“This means greater transparency of fuel prices from all retailers and, most importantly of all, a price monitoring body that can take decisive action on retailers whenever drivers are overcharged. This can’t happen soon enough.”