UK fuel margins still high despite lower pump prices, says CMA

(Sharecast News) - The UK competition regulator has said that fuel margins still remain high despite the recent falling in prices at the pump. The Competition and Markets Authority has found that fuel margins - the difference between what a retailer pays for fuel and what it sells it at - are still at similar levels to when it launched its road fuel market study in 2023.

Supermarket fuel margins had fallen from 8.9% in December to 7.9% in February, before rising to 8.3% in March, while non-supermarket fuel margins fell from 9.9% in December to 8.9% in January, before rising to 10.4% in March

This, it says, "suggests overall competition in the UK's road fuel retail market remains weak". However, the CMS did stress that its report does not factor in developments in operating costs when comparing prices.

"The CMA will undertake a review of fuel retailer operating costs in its first annual road fuel monitoring report later this year to assess whether operating cost changes are impacting fuel margins for large retailers," the regulator said.

By the end of May, the average petrol and diesel prices were 132.0p and 138.4p per litre (ppl) respectively, down 7.6ppl and 8.4ppl compared with the end of February.

"While there is uncertainty over how global events will impact the price of oil, our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months," said Dan Turnbull, senior director of markets at the CMA.

"The government committed to launching a 'fuel finder' scheme following our recommendation to help drivers compare real time prices and boost competition. Once launched, it will make it easier than ever to shop around and find the best deals."

Meanwhile, according to RAC data, the average price for a litre of standard unleaded petrol currently stands at 134.14p across the UK, and 141.22p for diesel.

The data also shows that while UK supermarkets mostly charge among the lowest rates for petrol compared with all providers - Tesco, Sainsbury's, Morrisons and Asda all sit between the 130-131ppl range - listed oil majors BP and Shell charge the highest at 136.3ppl each.