CMA publishes latest monitoring update on road fuel market

The Competition and Markets Authority (CMA) has published its latest road fuel monitoring report, setting out how the conflict in the Middle East has affected what drivers pay at the pump. The report also assesses fuel margins – the difference between the price petrol stations pay for fuel and the price they sell it at – and provides an update on Fuel Finder registration and enforcement.

In its previous report, published in June, the CMA found that the conflict had caused a rapid increase in wholesale fuel costs, which had been passed on to drivers through higher prices and that historically high margins remained a concern.

• Akaryakıt fiyatları mercek altında; CMA son raporunu yayımladı

Today’s report

Overall, the CMA’s analysis indicates that lower wholesale prices led to prices at the pump falling in June, although prices remained significantly above pre-conflict levels. The CMA has not found evidence that retailers actively changed their pricing strategies to take advantage of the crisis.

However, the CMA remains concerned that the continued use of passive pricing strategies by the majority of retailers is contributing to sustained high margins. The CMA’s analysis indicates that some retailers did not immediately pass reductions in wholesale diesel prices on to drivers – a move which would have intensified competitive pressure on rival retailers.

Given these findings, the CMA will continue to actively monitor and undertake a more detailed review in the autumn. The autumn report will include further analysis of retailers’ pricing strategies, whether wholesale price changes are reflected in retail prices in a timely manner and the reasons why fuel prices vary between local areas – with a view to ensuring that customers are paying a fair price for fuel wherever they live.

Sarah Cardell, Chief Executive of the CMA, said:

We know prices at the pump are putting real pressure on drivers’ pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East.

We will continue to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.

In the meantime, Fuel Finder can help drivers save money when they fill up. The more motorists make use of Fuel Finder-backed services, the better it works – saving money now and driving down prices in the long run.

Fuel Finder

Fuel Finder can help increase competition between fuel retailers by making it easier for drivers to compare fuel prices. Fuel Finder has made significant progress and current analysis shows that around 97% of UK petrol stations are registered with the scheme and that those sites account for an estimated 99% of fuel sold in the UK.

Registered sites are also providing fuel price information, helping drivers access up-to-date prices across the UK. Current analysis shows that the overwhelming majority of sites have recorded a price update within the last week. If a site has not updated prices in the last week, that does not necessarily mean it is failing to report – it could be that the price has not changed. For example, smaller and rural sites tend to change their prices less frequently than others.

Fuel Finder enforcement

To date, the CMA’s enforcement of Fuel Finder has focused on making sure retailers are registered with the scheme. Since the end of the grace period in April, the CMA has sent 1,166 letters to retailers and issued compliance notices in respect of 53 sites. Most registration issues are resolved quickly once retailers are contacted. This approach has contributed to extremely high levels of registration, with no need for the CMA to impose financial penalties.

VE3, the aggregator responsible for reporting issues to the CMA, has not yet referred any suspected cases of non-compliance with the price reporting duty to the CMA. The CMA will continue to promote compliance with the regulations through outreach to retailers and targeted, proportionate enforcement action where appropriate.

Notes

1. Fuel Finder is an important part of the package of measures introduced to strengthen competition in the road fuel market following the CMA’s 2023 market study.
2. Fuel Finder has separate policy, operational and enforcement roles: the Department for Energy and Net Zero sets the policy framework and appoints the data aggregator; the aggregator (VE3) operates the public database, monitors compliance with the scheme rules and refers suspected breaches to the CMA; and the CMA investigates suspected breaches and takes enforcement action where appropriate.

SOURCE: GOV