The latest monitoring report on road fuel shows that prices at the pump have risen since late January, accompanied by above average margins and spreads says the Competition and Market’s Authority
Their report finds that fuel margins of retailers – the difference between what a retailer pay for its fuel and what it sells at – remain at the high levels seen during the CMA’s market study.
On a percentage basis, supermarkets recorded margins of 4% in 2017, which increased to 7.6% in 2022 (the year the CMA carried out its market study) and 7.8% in 2023. For other retailers, margins were 6.4% in 2017, increasing to 7.3% in 2022 and 9.1% in 2023.
Dan Turnbull, Senior Director of Markets at the CMA, said:
Drivers are feeling the pinch as fuel prices have been edging up since January. We’re particularly concerned by high margins which indicate weakened competition and are not a good sign for drivers.
Today’s report reinforces the need for Pumpwatch and statutory powers to be in place as soon as possible, to ensure competition is effective in this market and to get a better deal for UK drivers.
