Petrol and diesel drivers to see major fuel station changes soon that could slash costs 'by 6p per litre'

A statutory open data scheme for fuel prices - which will be known as Fuel Finder - will be launched to increase price transparency which will help drivers to compare prices easily and make more informed decisions on where to buy petrol and diesel.

It follows calls from the CMA in July 2023 for major retailers and supermarkets to publish fuel prices to help promote competition and slash prices for motorists.

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It found that at a national level competition between fuel retailers has weakened since 2019, with drivers dealing with a postcode lottery for cheap fuel.

On 16 January 2024, the Department for Energy Security and Net Zero (DESNZ) published an eight-week consultation on how the fuel price data checker should be rolled out.

It has now been confirmed that the Fuel Finder will be launched "as quickly as possible" although Parliamentary hurdles could stand in the way.

A new report from the CMA highlights how the Data Protection and Digital Information Bill, which would have provided the legislative basis for Fuel Finder, fell at prorogation when the General Election 2024 was called.

Subject to Parliamentary timings, the Government is aiming to launch Fuel Finder by the end of 2025 and give major retailers and supermarkets time to prepare for the reporting requirements.

It is hoped that early 2025 will see the publication of an Invitation to Tender to procure an aggregator to help with the rollout of Fuel Finder.

During 2025, the Fuel Finder will be developed, with hopes the Data (Use and Access) Bill will receive Royal Assent. The report states that Fuel Finder will be launched by the end of 2025.

The Budget documents states: "While fuel price reactions are inevitably uncertain and sensitive to wider global factors, by increasing transparency and encouraging competition between forecourts, scenario modelling by the Government suggests pump prices could reduce by 1-6p per litre as a result of these measures, helping to ensure that drivers get a fair deal for fuel across the UK."

Reacting to the new measures, RAC head of policy Simon Williams said: “It’s fantastic to see the Government has now said it will introduce the Pumpwatch scheme and fuel price monitoring function by the end of next year as this is something we’ve long been calling for.

"This will help drivers get a fairer deal every time they fill up by enabling them to find the cheapest fuel near them and ensuring significant reductions in wholesale fuel prices are passed on to customers at the pumps.”

The publication of the report follows the delivery of the Budget by Chancellor Rachel Reeves who announced that fuel duty rates would remain frozen for another year.

She confirmed that it would cost over £3billion next year to retain the 5p cut and freeze fuel duty again when it was originally designed to expire in March 2025.

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The MP for Leeds West and Pudsey added: "At a time when the fiscal position is so difficult, I have to be frank with the house that this is a substantial commitment to make.

"I have concluded that in these difficult circumstances, while the cost of living remains high and with the backdrop of global uncertainty, increasing fuel duty next year would be the wrong choice for working people.

"It would mean fuel duty rising by 7p per litre. So I have decided today to freeze fuel duty next year and I will maintain the existing 5p cut for another year too. There will be no higher taxes at the petrol pumps next year."