Petrol stations are still charging way more than they should, according to the UK's competition watchdog, leaving drivers out of pocket while everyday costs keep rising.
The Competition and Markets Authority (CMA) found that forecourt profit margins are still much higher than they used to be. In the four months leading up to March, petrol retailers were making an average of 13.8p per litre in profit—more than double the 6.5p margin they had from 2015 to 2019. Diesel wasn’t much better, with profits at 13.4p per litre, a big jump from the previous average of 8.6p.
Despite wholesale fuel costs dropping earlier this year, retailers were slow to pass on savings. It wasn’t until March that pump prices started to budge, even though fuel prices had been falling since mid-January.
According to the RAC, this means drivers aren’t getting fair prices at the pump. The CMA even estimated that higher profit margins meant UK drivers overpaid by £1.6 billion for fuel in 2023.
So, what’s being done about it? From this year, the CMA has new powers to monitor fuel prices. And by the end of 2025, the Government plans to launch a fuel price tracker, helping drivers find the cheapest petrol and diesel near them.
CMA’s Dan Turnbull says, "While there are several factors contributing to the higher fuel prices seen in recent months, fuel margins remain stuck at high levels which impacts prices paid by drivers at the pump.
"The fuel finder scheme set to launch this year should be a game changer for drivers, allowing them to find the cheapest fuel prices while boosting competition between fuel retailers."
As of yesterday, petrol prices averaged 135p per litre, while diesel sat at 142p. Let’s hope those numbers start dropping soon.
