The UK Competition and Markets Authority (CMA) has published the results of its road fuel market study and set out its proposals to increase transparency in fuel prices.
The regulator found (187 pages / 4.78MB PDF) no evidence of competition concerns involving fuel retailers but maintained that greater transparency in pricing is needed to improve consumer confidence and bring down prices for drivers.
To achieve this, the CMA recommended the development of a new ‘fuel finder’ scheme to ensure that retailers provide up-to-date pricing for drivers. It said the pricing information should be easily used by third party apps, such as satnavs or map apps, through a dedicated fuel finder app, or a combination of both.
The CMA also said a new fuel monitor body to examine prices and margins on an ongoing basis would help strengthen competition in the market.
It comes after an initial review conducted last year found that the gap between the crude oil price and the wholesale price of petrol and diesel increased from 10p to 35p between July 2021 and July 2022. Over the same period, the CMA found the difference between the wholesale price and the price charged to motorists was 10p on average.
The CMA found that the 5p per litre fuel duty cut, announced by then UK chancellor Rishi Sunak in March 2022, had, in general, been passed on to motorists by retailers.
In response to the CMA’s recommendation for a new fuel finder scheme, which requires legislative backing, the UK government confirmed that it will change the law to require retailers to comply with the scheme.
Ministers also backed the CMA’s plan for a new fuel monitor body, though the government has not yet designated which public organisation will be given the powers to scrutinise prices and alert the government if further intervention is needed.
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