A new report published today from the Competition and Markets Authority (CMA) found that the constant petrol and diesel price changes require further investigation. The study follows on from an urgent review that had been commissioned by the Government to look, in particular, at whether the cut in fuel duty, announced in March 2022, had been passed on to consumers.
The CMA analysis found that 2022 was the most volatile for fuel prices since records began, rising by around 50p a litre from January to July.
This was the largest leap in fuel prices ever recorded in one year, before falling by 31p for petrol and 14p for diesel since.
The gap between diesel and petrol prices has become larger than ever reliably recorded, as diesel now costs 24p more per litre than petrol.
The CMA claimed this was largely due to Western Europe’s reliance on imports of diesel, but not petrol, from Russia.
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Unlike the urgent review in July, a Market Study allows the CMA to use compulsory information-gathering powers to probe the entire market.
The CMA has also conducted in-depth analysis of fuel prices over the last five years, rather than just the one year covered by the urgent review.
Sarah Cardell, Interim Chief Executive of the CMA, said: “It has been a terrible year for drivers, with filling up a vehicle now a moment of dread for many.
“The disruption of imports from Russia means that diesel drivers, in particular, are paying a substantial premium because of the invasion of Ukraine. A weaker pound is contributing to higher prices across the board too.
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“One of the chief concerns has been how quickly the fuel retailers have responded to wholesale price volatility, both up and down. The drivers’ view is that pump prices shoot up much more quickly than they come down, in response to wholesale cost changes.
“The focus on the pump-price postcode lottery is also very welcome, given the big price differences between communities that are literally down the road from each other.”
There have been frequent and consistent calls for a fuel price checker, similar to the Consumer Council’s Fuel Price Checker tool in Northern Ireland.
It is said this would create greater fuel transparency, with the AA calling on the Government to speed up the processing of launching such a tool for consumers in England, Scotland and Wales.
Simon Williams, RAC fuel spokesperson, added: “We strongly urge the biggest retailers to lower their prices. Unfortunately, we fear they are holding out, hoping for a rise in the price of oil later this month.”
The CMA is now inviting views and comments on the emerging evidence published today. A further update, including options for possible next steps, will be published in the Spring.
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