The Competition and Markets Authority (CMA) has accused UK fuel retailers of being too slow to pass on falling wholesale prices to motorists, a practice that has cost drivers millions of pounds. In its latest monitoring report, the watchdog found that while wholesale prices have declined, retail margins have remained elevated, indicating that savings are not being fully transferred to consumers.
CMA Findings on Retailer Behaviour
The CMA's report, published on Tuesday, highlights that the gap between wholesale and retail fuel prices has widened over the past year. The watchdog notes that supermarkets, which account for a significant share of fuel sales, have been particularly slow to adjust prices at the pump. According to the CMA, this has resulted in drivers paying an estimated £1.6 billion more than necessary over the past two years.
The report also points to a lack of competition in some local markets, where a handful of retailers dominate. The CMA has previously called for a statutory fuel finder scheme to increase transparency, but the government has yet to implement such a measure. The watchdog says it will continue to monitor the situation and may take further action if retailers do not improve their pricing behaviour.
Impact on Drivers and Next Steps
For the average motorist, this means that despite falls in crude oil prices, the cost of filling up a tank has not decreased proportionally. The CMA estimates that the average driver has been overcharged by around £30 per fill-up over the past year. This has added to the cost-of-living pressures facing households across the UK.
The watchdog has urged retailers to act more quickly in passing on price reductions and has reiterated its call for a mandatory fuel price transparency scheme. The government has said it is considering the CMA's recommendations but has not set a timeline for action. In the meantime, the CMA says it will publish quarterly updates on fuel prices to hold retailers to account.
