Petrol and diesel drivers continue to deal with high fuel prices at the pumps as supermarkets and major retailers fail to pass on savings amid a lack of competition.
The interim monitoring report from the Competition and Market Authority (CMA) found that fuel margins "remain stuck" at historic highs, with drivers continually hit with expensive costs.
Between October 2024 and February 2025, both petrol and diesel prices increased, with global factors impacting the price of Brent crude oil.
On average, petrol prices rose by 5.2p per litre to 139.6p in February, while diesel drivers saw a price change of 7.1p per litre between October and February, to a total price of 146.8p.
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Drivers are still being hammered at the pumps for petrol and diesel
PA
Concerningly, the CMA found that retailers' fuel margins - the difference between what it pays for fuel and what it sells for - were similar to high levels seen during its previous road fuel market study.
This was undertaken between 2022 and 2023, when fuel costs reached their highest ever peak, with petrol costing 191.27p, while diesel drivers had to fork out almost £1.99 on average.
Supermarket fuel margins decreased from 8.6 per cent in September last year to 8.2 per cent in November. It peaked at 8.9 per cent in December.
The CMA stated that fuel margins remain high compared to historic levels, with overall competition between forecourts "remaining weak".
Dan Turnbull, Senior Director of Markets at the CMA, commented on the data, saying there was some hope for optimism in the coming months.
He said: "While there are several factors contributing to the higher fuel prices seen in recent months, fuel margins remain stuck at high levels which impacts prices paid by drivers at the pump.
"The 'Fuel Finder' scheme set to launch this year should be a game changer for drivers - allowing them to find the cheapest fuel prices while boosting competition between fuel retailers."
The tool has been touted by the Government as saving drivers between one and six pence per litre and stimulate overall competition between retailers.
Experts have consistently highlighted how prices remain high because retailers and supermarkets have little incentive to cut costs for consumers.
The Fuel Finder scheme will require all UK retail petrol stations to report prices and the unavailability of fuel within 30 minutes of a change.
It is expected to work in a similar way to the Consumer Council's Fuel Price Checker in Northern Ireland which publishes the cheapest, most expensive and average fuel price for towns and cities across the country.
The tool has been praised for helping bring prices far below the average price seen in England, Scotland and Wales. At present, motorists in Northern Ireland will pay just 129p for petrol and 135p for diesel.
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The Fuel Finder scheme is expected to launch before the end of the year
PAThe CMA echoed calls from the Government, which stated that the scheme should be launched by the end of the year, subject to legislation and Parliamentary time.
Previous road fuel market studies from the CMA concluded that drivers would benefit from such a scheme, calling on the last Conservative Government to introduce such measures.
