Retailers could be overcharging motorists at the pump after the UK’s competition watchdog found profit margins in the sector remain “persistently high” and unexplained.
In its first annual road fuel monitoring report, the Competition and Markets Authority (CMA) found that, despite a year-on-year fall in prices at the petrol pump, the profit margins made by retailers have been rising over the past year.
It said this could not be explained by operating cost pressures, as claimed by supermarkets and other fuel retailers, and signals that competition in the sector is “weak” – which means pump prices are not coming down as much as they could.
The Government is pressing ahead with the launch of its new “fuel finder” in 2026, allowing drivers to compare real-time fuel prices, and the CMA said it would take action against retailers that fail to provide data for the scheme.
Dan Turnbull, senior director of markets at the CMA, said: “Fuel margins remain at persistently high levels – and our new analysis shows operating costs do not explain this.
“This indicates competition in the sector is weak – if it was working well, drivers could see lower prices at the pump.
“We know fuel costs are a big issue for drivers, especially at this time of year with millions making journeys across the country.
“This is why the fuel finder scheme is crucial – it will put power back in the hands of motorists and save households money.”
