The Competition and Markets Authority (CMA) has reported that petrol retailers have not changed their pricing strategies to exploit the recent fuel crisis. However, the regulator remains worried about weak competition, which continues to keep retail fuel prices elevated.
According to the CMA’s latest findings, wholesale fuel prices have been the primary driver behind pump price increases in March and April. Despite a stabilization in wholesale costs and inventory levels this April, many retailers have maintained historically high profit margins, with average fuel margins reaching 11.3 pence per litre. In some cases, individual retailers even saw slight margin increases during this period.
The CMA’s ongoing market study highlights a lack of effective competition in the fuel retail sector, suggesting that sustained high retail margins are a consequence of this market dynamic. Sarah Cardell, Chief Executive of the CMA, emphasized that while wholesale price rises mainly account for the higher prices at the pump, the persistence of weak competition means drivers are paying more than they should.
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To address this, the CMA is closely monitoring prices and margins and expects retailers to pass any wholesale price reductions directly and promptly to consumers. Meanwhile, drivers are encouraged to use the Fuel Finder service, which can help them save up to £9 per tank by identifying cheaper fuel options nearby. Increased use of this service can contribute to greater competition and lower prices in the long term.