British drivers 'paying more for fuel than they should be' ahead of major petrol station changes

Between May and August 2024, supermarket fuel margins increased, up from seven per cent in April to 8.1 per cent in August.

The CMA described the rise in margins as "concerning" and suggests levels of competition remain weakened, ultimately meaning drivers pay more at the pumps.

Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk

While fuel prices have largely been falling since the start of the year, the CMA warned that these trends could begin to slow as global factors continue to play a role.

According to the latest data from RAC Fuel Watch, petrol drivers are paying 136.31p per litre of petrol and 141.86p for diesel, with no changes forecast.

Dan Turnbull, Senior Director of Markets at the CMA, said: "While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins.

"We therefore remain concerned about weak competition in the sector and the impact on pump prices."

He added that he was pleased with the Government's progress in moving forward with the Fuel Finder scheme to help motorists find their cheapest prices.

The CMA said it was confident that the scheme will increase competition and support the economy, with drivers having more money to spend in other areas.

The Fuel Finder is expected to launch by the end of 2025, with the aim of increasing transparency and encouraging competition between forecourts to bring down costs.

It will require retail petrol stations to report prices and the unavailability of fuel within 30 minutes of a change.

According to details from Budget documents, 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".

RAC head of policy Simon Williams said: “It’s disappointing to hear that the CMA is still concerned about competition among fuel retailers, and that margins remain higher than historic levels – especially after it announced this summer that drivers were overcharged by £1.6billion in 2023.

“We hope the introduction of the Government-backed fuel finder scheme next year will succeed in driving greater competition and enable drivers all around the UK to benefit from fairer prices.”

It is hoped the system will work in a similar way to the Consumer Council's Fuel Price Checker, which is currently being used across Northern Ireland.

LATEST DEVELOPMENTS:

• UK urged to move away from biofuels and only focus on electric as alternative to petrol and diesel
• Elderly drivers may be 'unaware that their vision has deteriorated' amid calls for urgent law changes
• Hundreds of drivers risk hefty fines for offences on major motorway with dozens of vehicles seized

This tool helps motorists see which areas of the country have the cheapest and most expensive prices, as well as the average, helping motorists make major savings.

Currently, petrol and diesel prices in Northern Ireland are an average of 6p cheaper per litre than average costs in England, Scotland and Wales.

It also shows more granular details. Coleraine is currently selling diesel for just 131.2p per litre, making it 4p cheaper than the NI average this week and more than 10p cheaper than the UK average.

Drivers in Coleraine are also able to see that they have the cheapest average petrol price at just 126.5p per litre. In comparison, Magherafelt has prices that mirror the rest of the UK at 134.9 for petrol and 139.9 for diesel.