Mon, 22 Dec 2025

Mon, 22 Dec 2025 Petrol and diesel profit margins still persistently high, says watchdog

The consumer watchdog says weak competition between retailers is keeping profit margins up.
The UK's Competition and Markets Authority (CMA) has found that fuel profit margins remain high despite falling petrol prices, with drivers potentially paying more than they should for fuel. The CMA says that retailers' claims of higher operating costs do not explain this, and that competition in the sector is weak. To address this, the government will launch a "fuel finder" scheme allowing drivers to compare real-time fuel prices, which could incentivize retailers to lower prices. According to the CMA report, average fuel margins on a percentage basis have increased for both supermarket and non-supermarket retailers, despite falling fuel prices. The CMA says that if there was more competition, drivers would see better fuel prices at the pump. The planned fuel finder scheme will require retailers to sign up and report price changes within 30 minutes of them being implemented. The CMA has warned that it will take action against retailers who breach these conditions, which could include fines. Industry bodies such as the RAC and AA have welcomed the move, saying drivers are being overcharged for fuel. They claim that even though wholesale prices have fallen, petrol pump prices have not dropped accordingly. The Petrol Retailers Association (PRA) has said it will engage with the fuel finder scheme but disputes the CMA's findings, arguing that operating costs alone do not account for higher fuel margins.
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