The Competition and Markets Authority (CMA) has expressed worries about the financial burden faced by UK drivers, highlighting that they are still being overcharged for fuel due to persistently high retail margins. According to the CMA, competition in the fuel sector appears to be faltering, leading to elevated prices at gas stations across the country. This issue has become more pronounced over recent months as fuel margins have continued to rise, with supermarket fuel margins climbing from 7% to 8.1% and non-supermarket fuel margins increasing from 7.8% to 10.2%.
Dan Turnbull, a Senior Director at the CMA, emphasized that although fuel prices have seen a decrease since July, drivers are not benefiting from these reductions as much as they could be due to the overarching issue of high fuel margins. The CMA's concerns indicate a sustained lack of effective competition in the road fuel retail market, leading to ongoing challenges for consumers. Moreover, the watchdog reiterated the importance of addressing these issues promptly to ensure that drivers are not unfairly burdened by inflated prices at the pump, which can impact their overall spending power.
Despite the drop in fuel prices from June to October driven by external factors like crude oil costs, the notable disparity between what drivers pay for fuel compared to benchmark prices has persisted. The CMA highlighted that the retail spread remains higher than the long-term average, with prices at the pump exceeding the benchmark by 14.9p per litre for petrol and 16.3p per litre for diesel. This discrepancy underscores the necessity for increased competition in the sector to drive prices down and provide relief for consumers grappling with rising living costs.