Petrol Prices Spike: New Measures Coming to Combat Rising Fuel Costs

The Competition and Markets Authority (CMA) has expressed significant concerns about the competitive landscape among fuel retailers, highlighting the ongoing high margins affecting consumers. Research indicates that petrol spreads—the difference between pump prices and estimated wholesale costs—averaged 13.8p per litre from October 2022 to February 2023. This situation has contributed to UK drivers incurring an additional £1.6 billion in fuel costs in 2023 compared to 2019.

Motoring organizations are vocal about retailers not swiftly passing on cost reductions to the public. AA spokesperson Luke Bosdet noted that although road fuel prices began to decline in mid-January 2023, pump prices didn’t reflect these savings until early March, putting additional strain on families and small businesses dependent on vehicular transport. RAC’s Simon Williams added that the persistent high retail margins are a barrier to fair pricing at the pumps for the 43 million drivers in the UK.

With new powers granted in 2023, the CMA is committed to closely monitoring fuel prices. A government initiative, a fuel-finder service aiming to enhance price transparency for motorists, is set to be launched by the end of 2025. According to CMA senior director Dan Turnbull, this upcoming scheme aims to promote fairer prices and stimulate competition among retailers, proving crucial for UK drivers seeking affordable fuel options.