The Competition and Markets Authority (CMA) has reported that UK drivers are still paying more for fuel than they should because of “stubbornly high” retail margins.
The watchdog expressed concerns over weakened competition in the fuel sector, leading to inflated prices at the pump.
According to the CMA, fuel margins remain higher than historical levels. Supermarket fuel margins increased from 7% in April to 8.1% in August, while non-supermarket fuel margins rose from 7.8% to 10.2% during the same period. The sustained increase suggests that competition in the road fuel retail market remains weak.
Dan Turnbull, Senior Director of Markets at the CMA, stated: “While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins. We therefore remain concerned about weak competition in the sector and the impact on pump prices.
“With that in mind, we are pleased the government is progressing with our recommendations. These measures will empower drivers to find the cheapest fuel wherever they are in the UK, increase competition and support the economy. The more people save on fuel, the more they have to spend in other areas.”
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