Fuel prices continue to be a fraud, declares the competition watchdog | Business News

Competition between fuel retailers is “defrauding consumers” because drivers still pay too much to fill up, according to regulators.

In an update on its monitoring of the fuel market, the Competition and Markets Authority (CMA) said the cost to all drivers of the previously identified increase in retail fuel margins since 2019 was more than €1.6 billion. pounds only in 2023.

The watchdog discovered last year that drivers had paid extra in 2022 by £900 million at supermarket fueling sites alone.

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The CMA also announced that it would provide separate updates in the autumn on its work covering the cost of infant formula as well as supermarket loyalty schemes.

It added that there was little evidence that supermarket loyalty prices mislead shoppers, as consumer groups have widely suggested.

The regulator’s study of fuel prices has resulted in measures aimed at strengthening competition, but has not yet accelerated.

The CMA said it supports ongoing efforts to ensure a mandatory fuel price monitoring system to help consumers make informed choices at the pump.

As the new government moves forward with plans for bomb watchthe CMA said its temporary pricing data sharing scheme still only covered 40% of service stations.

It admitted it was not comprehensive enough to be used by mapping apps or satellite navigation systems to bring accurate, live information to people.

The regulator’s third monitoring report follows long-standing claims by auto groups of fuel misuse.

While supermarket chains used petrol and diesel as a means of attracting shoppers, this changed after the COVID pandemic when retailers invested in the cost of household essentials as the cost of living crisis accelerated.

Independent fuel retailers have long dismissed suggestions that prices are too high, insisting that critics are not taking into account their own additional costs in things like wages and electricity.

RAC Fuel Watch data showed average unleaded costs of 145.69 cents per liter and diesel just under 151 cents.

Their website indicated that prices should be falling.

Brent crude oil costs have fallen over the past three weeks, from $87 per barrel to $82, while the oil-priced dollar has also weakened against the pound, which will also help reduce some costs.

Much of the regulatory attention has been placed on the prices that fuel retailers pay suppliers and whether the lower prices are being passed on.

Sarah Cardell, chief executive of the CMA, said: “Last year we discovered that competition in the road fuels market was failing consumers and published proposals that would revitalize competition between fuel retailers.

“One year later, drivers are still paying dearly.

“We want to work with the government to implement our recommendation for a real-time fuel tracking scheme to kickstart competition among retailers.

“This will put the power in the hands of drivers who will be able to compare fuel prices wherever they are, causing greater competition.”

RAC head of policy Simon Williams said: “The report is, once again, confirmation of what we know and have been campaigning against for many years.

“Our analysis has long shown that, even accounting for retailers’ rising operating costs, margins on fuel are at extremely questionable levels.”