Drivers in Britain Still Overpaying for Road Fuel, UK Watchdog Reports

The UK’s drivers continue to face inflated fuel prices, with retail fuel margins costing them over £1.6 billion ($2.1 billion) in 2023, according to a report released on Friday by the Competition and Markets Authority (CMA).

The CMA’s analysis revealed that weakened competition in the fuel sector has sustained elevated costs for drivers. It noted that profit margins on fuel remain “significantly above historic levels,” with supermarket fuel margins now roughly double what they were in 2019.

This latest report echoes the findings of a 2023 CMA review, which called for reforms to enhance competition by providing consumers with more pricing information. Despite these recommendations, one year later, UK drivers are still burdened with high fuel prices.

“One year on and drivers are still paying too much,” said CMA Chief Executive Sarah Cardell in a statement. “We want to work with the government to put in place our recommendation of a real-time fuel finder scheme to kick-start competition among retailers.”

The CMA’s analysis utilized a voluntary price-sharing system that currently covers only 40% of fuel retail sites. This limited coverage is insufficient to significantly benefit consumers or drive competition, the watchdog indicated.

However, the CMA pointed out that legislation proposed by the new Labour government could establish the legal framework for a comprehensive and compulsory price-sharing scheme. While this legislative move could ultimately bolster transparency and competition in the fuel market, the CMA cautioned that implementation would take time.

Source: Swiss Info