New UK petrol and diesel rule means drivers could save £156 each at pump

James Rodger
·2-min read
New UK petrol and diesel rule means drivers could save £156 each at pump
-Credit: (Image: Reach Publishing Services Limited)


Drivers are "paying more for fuel than they should be" ahead of major petrol station changes. Research from the Competition and Markets Authority (CMA) reported that the fuel margins of retailers - the difference between what a retailer pays for fuel and the level it sells it at - still remain high.

Figures revealed by the CMA show supermarket fuel margins jumped from 7% in April to 8.1% in August, while margins at non-supermarket pumps climbed from 7.8% to 10.2% over the same period. The “sustained” increase in the level of fuel margins was concerning, and suggested that overall levels of competition in the road fuel retail market remained weakened.

Between May and August 2024, supermarket fuel margins increased, up from seven per cent in April to 8.1 per cent in August. Dan Turnbull, Senior Director of Markets at the CMA, said: "While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins.

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"We therefore remain concerned about weak competition in the sector and the impact on pump prices." The Government suggests "pump prices could reduce by 1-6p per litre as a result of these measures, helping to ensure that drivers get a fair deal for fuel across the UK".

A six pence cut on an average car would hand drivers £3, which over the course of a year, if filling up once a week, could be worth £156. RAC head of policy Simon Williams said: “It’s disappointing to hear that the CMA is still concerned about competition among fuel retailers, and that margins remain higher than historic levels – especially after it announced this summer that drivers were overcharged by £1.6billion in 2023.

“We hope the introduction of the Government-backed fuel finder scheme next year will succeed in driving greater competition and enable drivers all around the UK to benefit from fairer prices.”

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