The Competition and Markets Authority (CMA) has published an update on the widespread action it is taking to ensure that people can get the best possible choices and prices in the face of ongoing cost of living pressures. New analysis highlights how the cost to drivers of weakened competition in the fuel sector persists, but competition in the groceries sector appears to be more effective in bearing down on retail margins.
In its recent monitoring update, the CMA found:
- Retailers’ fuel margins – the difference between what a retailer pays for its fuel and what it sells at – are still significantly above historic levels.
- Supermarkets’ fuel margins are roughly double what they were in 2019.
- The total cost to all drivers from the increase in retail fuel margins since 2019 was over £1.6bn in 2023 alone.
- Competition among fuel retailers is failing consumers, just as it was in July last year when the CMA published its road fuel market study.
The CMA is currently monitoring developments in the fuel market using information provided voluntarily by fuel retailers. It has created a temporary price data-sharing scheme, and it is positive that some major players have started to integrate this into consumer-facing products, like apps. However, the current scheme covers only 40% of fuel retail sites and is not comprehensive enough to be used by map apps or satnavs to bring accurate, live information to people – and this is what would have a substantial impact on the market.
The proposed introduction of the Digital Information and Smart Data Bill by the new government could provide the legislative basis to set up a compulsory and comprehensive scheme that would change this – which the CMA would welcome.