Fuel retailers have taken advantage of drivers to the tune of £1.6 billion over the past year by significantly increasing their profit margins.
Motorists have faced the largest spike in pump profits since 2019, according to the Competition and Markets Authority (CMA), as reported by Need To Know.
The CMA’s investigation revealed that since Asda’s acquisition by private equity, the supermarket chain has become less competitive, which has led to higher prices at the pump as other supermarkets follow suit.
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Currently, forecourt retailers are earning an additional 6p per litre in profits compared to previous years, and this figure has remained unchanged over the past year, despite a drop in oil prices following the energy crisis.
Once a leader in offering the lowest fuel prices, Asda is no longer the cheapest option according to industry figures released earlier this year.
CMA chief Sarah Cardell, noted that the increased profit margins have cost drivers over £1.6 billion in 2023 alone.
The CMA’s findings suggest that drivers could save approximately £4.50 per fill-up if they had access to the lowest available prices.
The watchdog is urging the government to mandate that petrol retailers share live fuel pricing, which could then be displayed on satellite navigation systems.
She highlighted that significant price reductions were observed following previous coverage by media.
Active media campaign has saved drivers an estimated £90 billion in fuel duty over the past 14 years, translating to a savings of £16.50 per fill-up.
Sarah Cardell, stressed the importance of competition among retailers in driving down fuel margins. She emphasized the need to empower consumers with real-time access to fuel prices via mobile apps or satnavs, which could save drivers up to £4.50 per fill-up.
Cardell called for legislative changes to ensure fuel retailers are required to share live prices, supported by new powers for the CMA to enforce these rules on behalf of consumers.
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