Britain’s competition regulator, the Competition and Markets Authority (CMA), announced on Friday that drivers in the country are still overpaying for road fuel.
This issue stems from increased retail fuel margins, which have collectively cost drivers more than 1.6 billion pounds ($2.1 billion) in 2023.
The CMA’s analysis indicates that weakened competition in the fuel sector continues to burden consumers, with profit margins remaining “significantly above historic levels.”
Notably, the fuel margins for supermarkets are approximately double what they were in 2019.
This report reinforces the conclusions of a CMA review conducted in 2023, which recommended reforms aimed at enhancing competition within the fuel sector.
One key suggestion was the implementation of a real-time fuel finder scheme to provide consumers with more transparency about fuel prices.
CMA Chief Executive Sarah Cardell emphasized the need for action, stating, “One year on and drivers are still paying too much.
We want to work with government to put in place our recommendation of a real-time fuel finder scheme to kick-start competition among retailers.”
Currently, the CMA’s analysis relies on a voluntary price-sharing system that covers only 40% of fuel retail sites.
The CMA argues that this system is insufficient for effectively assisting consumers or promoting competition.
The regulator suggested that legislation proposed by the new Labour government could establish a legal framework for a comprehensive and mandatory price-sharing scheme, although it would require time to implement.
In summary, the CMA’s findings highlight ongoing issues in the fuel sector, with a particular focus on the lack of competitive pricing and the need for government intervention to ensure fairer fuel prices for consumers.