In a recent update on its fuel market oversight, the Competition and Markets Authority (CMA) reported that the inflated retail fuel margins since 2019 have cost motorists more than £1.6 billion in 2023. Last year, the CMA discovered that drivers had been overcharged by £900 million at supermarket fuel stations alone in 2022.

The CMA announced plans to provide separate updates in the autumn regarding the cost of baby infant formula and supermarket loyalty schemes. Contrary to consumer group claims, the CMA found little evidence suggesting that loyalty prices were misleading shoppers.

The regulator’s investigation into fuel prices has led to measures intended to enhance competition, though these efforts are still gaining momentum. The CMA expressed support for a mandatory fuel price monitoring system to aid consumers in making informed decisions at the pump.

As the government advances its Pumpwatch initiative, the CMA noted that its current temporary price data-sharing scheme covers only 40% of service stations. This limited coverage prevents the data from being fully integrated into map apps or navigation systems for real-time updates.

The CMA’s third monitoring report follows persistent allegations of fuel profiteering by motoring groups. Traditionally, supermarket chains used fuel prices to attract shoppers, but this strategy shifted post-COVID, with retailers focusing on household essentials amid the cost of living crisis.

Independent fuel retailers have refuted claims of excessive pricing, citing additional costs such as wages and electricity. According to RAC Fuel Watch data, average unleaded fuel costs 145.69p per litre, while diesel is just under 151p. The RAC website indicates that prices should be decreasing.

Over the past three weeks, Brent crude oil prices have fallen from $87 to $82 per barrel, and the oil-priced dollar has weakened against the pound, potentially reducing costs. Regulatory attention has largely focused on whether fuel retailers are passing on lower supplier prices to consumers.