UK motorists are paying more than necessary for petrol and diesel, according to the Competition and Markets Authority (CMA), which has raised fresh concerns about inflated profit margins at fuel retailers.
In its latest monitoring report, the CMA revealed that between late May and late August, average petrol prices rose by 1.9p per litre to 133.9p, while diesel climbed 3.5p to 141.9p.
While some of the increase reflects higher wholesale oil costs with Brent crude hitting a two-month high – the regulator said margins remain far above historic levels.
“Drivers across the UK have been paying more at the pump,” said Dan Turnbull, CMA’s senior director of markets.
“What’s deeply concerning is that fuel margins, a key measure of retailer profit, remain far higher than we’ve seen historically.”
Figures show supermarket margins rose to between 8% and 9.1% from April to June, compared with 4% in 2017. Other retailers reported margins of 9.9% to 10.6%, nearly double the 6.4% recorded in 2017.
Motoring groups criticised the findings. The AA’s Luke Bosdet said: “This confirms what drivers suspected,they continue to be ripped off at the pumps. The postcode lottery of fuel prices makes it even worse.”
The RAC also expressed frustration, saying the CMA’s scrutiny has not led to lower prices. “Hope now rests on the government’s fuel finder scheme,” said RAC policy head Simon Williams.
The fuel finder scheme, set to launch by year-end, will require retailers to publish daily prices, allowing drivers to compare costs in real time.
The CMA previously found motorists overpaid by £1.6bn in 2023, warning that unless transparency drives competition, further action may be required.
