The Competition and Markets Authority (CMA) is set to be given the authority to challenge fuel retailers who are unfairly increasing the price at the pumps.
Under new amendments in the Digital Markets, Competition & Consumers Bill, the CMA will become the body responsible for closely monitoring road fuel prices and reporting any sign of malpractice to the Government.
In fact, a new report from the CMA founds that major fuel retailers are taking far bigger margins than they have done in the past – and they will now be tasked to help reduce this gap.
The aim is to make the cost of petrol and diesel fairer for drivers.
Also, the CMA hopes their actions will improve competition in the market across the UK.
The new powers will ensure that fuel retailers, including supermarkets, will be forced to come clean on how much they are charging customers on their forecourts versus their profits.
Those that fail to comply could face a fixed fine from the watchdog of up to 1% of their worldwide turnover, or an ongoing fine of up to 5% of daily turnover.
- RAC Fuel Watch – petrol and diesel prices
- The myRAC app – everything a driver needs in one handy place
- What affects the price of fuel in the UK?
Following the announcement, Energy Security Secretary Claire Coutinho said: “At a time when many were struggling with increased living costs, we saw shocking behaviour from some fuel retailers who failed to pass on savings at the pump.
“Now we are cracking down on any petrol station bosses found to be unfairly hiking up their prices.
“That’s why we’re giving the CMA new powers to bring fairness back to the forecourts and make sure UK drivers get a competitive fuel price.”
Alongside the Bill and the CMA’s new powers, the Government is planning to make it a legal requirement for fuel retailers to share daily price information that will help drivers to find the cheapest fuel near them.
There is currently a consultation on the design of Government’s open data scheme, which is due to launch this autumn.
Minister for Energy Consumer and Affordability Amanda Solloway said: “Today marks an important step in our commitment to stand by UK drivers as we continue to keep costs down for families.
“I’m pleased to see many retailers cooperate with the CMA so far, to share their price information and bring competition back to our petrol stations.
“I now urge comparison sites and others to get onboard to help UK motorists find the best local price for their fuel.”
- What is the best fuel for my car?
- How to save fuel – the ultimate guide
- Is it socially acceptable to ask passengers to contribute to fuel costs?
Although the news is a positive step for drivers across the UK, the CMA powers are expected to come into force later next year.
Sarah Cardell, chief executive of the CMA, said: “We welcome this new responsibility and will use it to hold fuel retailers to account. The CMA is determined to revitalise competition in this sector so drivers can be confident they are getting the best price possible when they fill up their vehicles.”
RAC fuel spokesman Simon Williams continued: “We welcome the CMA being given new powers to take action against retailers that don’t pass on the savings they benefit from when wholesale fuel costs fall significantly. Due to our long-term monitoring of retail and wholesale prices, we have been calling for fairer, more transparent pricing for years.
“While the CMA’s report concluded the supermarkets had overcharged to the tune of £900m last year, our data shows this behaviour is continuing to this day with supermarket fuel margins more than double what they were before the pandemic.
“These new powers can’t come soon enough because, as it stands, the Treasury’s 5p-a-litre fuel duty discount is not making it to drivers at the pumps.”
What do you make of the announcement? Will this be a positive step in reducing the price of fuel for drivers across the country? Leave your comments below.
You might also like

Are fuel prices getting worse for drivers across the UK?
Despite the average price of petrol falling by 2p a litre in October, data from RAC shows that drivers across the UK are paying too much at the pumps.

Charge points are set to overtake fuel pumps by 2030 – but is it enough?

European fuel prices – Petrol and diesel prices in Europe
Are you planning a trip to the continent? Make sure you find out how much you'll have to pay for diesel or petrol at the pumps. Data from RAC Fuel Watch.

How to save fuel – the ultimate guide
8 industry-expert tips for how to save fuel: looking at cruise control, the speed you drive, what gear you drive in and how much fuel you carry

Is it socially acceptable to ask passengers to contribute to fuel costs?
Ever since the Russian invasion of Ukraine, fuel prices in the UK have continued surge to all-time highs.
Popular in News
1
Car buyers to save thousands as EV grant returns
2
Private parking companies issue a record 14.4m tickets to drivers in a single year
3
Drivers fined £1m from just 36 yellow box junctions in 2024
4
Road deaths on the rise in Great Britain
5
Private parking industry urged to publish ‘full and transparent’ complaints and appeals data
6
Drivers now able to search for new home that comes with EV chargers
7
Leicester’s Sean Kimberlin named as RAC Mobile Mechanic of the Year
8
Number of drivers caught using unroadworthy vehicles jumps by 52% in a year
9
Warning to drivers across the UK over fake parking apps
10