Drivers spent an extra £1.6 billion on fuel last year due to retailers keeping their margins significantly above historic levels. A report from the Competition and Markets Authority (CMA) revealed that retailer profit margins have sharply increased since 2019, going from an average of 4.4% to 8.1% in January 2023.
As a result, drivers have been overpaying for fuel, with the CMA previously pointing out that in 2022, supermarket fuel stations overcharged customers by up to £900 million.
The CMA criticizes these profiteering retailers for "failing customers" and suggests that implementing the Conservative government's PumpWatch scheme, designed to provide up-to-date fuel prices, could save drivers around £4.50 per tank.
Simon Williams, the RAC’s head of policy, called the situation "outrageous," stating that “drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.”
The RAC has written to the new Energy Secretary, Ed Miliband, urging him to implement the CMA's recommendations quickly to help motorists save money.
Currently, the average price of petrol is 145.08 pence per litre, with diesel at around 150.25 pence per litre. This is down from highs earlier this year, with petrol at 150 pence per litre and diesel at 158 pence per litre in May. Although fuel prices are expected to keep falling gradually, the CMA warns that full implementation of the PumpWatch scheme "may take time," with only 40% of retailers signed up so far.
