Drivers are paying an extra 6p per litre for fuel

According to a regulator, drivers have been paying more for fuel in the last four years as competition between retailers has weakened.

It said that increased supermarket fuel margins have led to drivers paying an extra 6p per litre.

Major supermarket Asda was fined £60,000 for a failure to provide information when required, the regular said. Asda has now provided the CMA with the required information.

This comes in the Competition and Markets Authority’s (CMA) final report of the fuel market.

As part of a year-long investigation, the watchdog examined whether there was “failure in competition”. This would cause customers to pay higher fuel prices than is necessary.

The CMA said there should be a new legally mandated system requiring fuel providers to publish data on fuel charges, so customers can see petrol station costs in real time. It has set out a plan to help drivers get more competitive fuel prices.

Retailers currently only provide information on prices at the petrol stations themselves, which makes it hard for drivers to compare prices and weakens competition.

A fuel finder open data scheme would ensure fuel retailers provide up-to-date pricing and make that available to drivers in accessible format, also used by satnavs or map apps.

The fuel monitor would be up to date with prices and margins, meaning it could recommend further action if competition continues to weaken in the market.

With greater transparency and shopping around as effectively as possible, the driver of a typical family car could save up to £4.50 a tank within a five minute drive.

Speaking about the report, CMA boss Sarah Cardell stated: “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this.

“Drivers buying fuel at supermarkets in 2022 have paid around 6 pence per litre more than they would have done otherwise, due to the four major supermarkets increasing their margins.

“This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.”

She hopes to “reignite competition among fuel retailers” by making it easier for drivers to compare up to date prices.