In an increasingly competitive world, staying informed can be the difference between paying too much or making the most of your money. As fuel prices continue to be a major cost for motorists, a new scheme is set to give drivers more power to find the best fuel prices. This comes as the Competition and Markets Authority (CMA) plans to put an end to overcharging at the pump and ensure greater competition in the UK’s fuel retail sector.
The CMA has recently concluded an in-depth study into the road fuel market, identifying an unsettling trend. Since 2019, competition in the retail road fuel market has shown signs of weakening, with drivers paying an additional 6 pence per litre at supermarkets due to increased fuel margins. Moreover, diesel prices have been slow to drop in 2023, partially due to slow reductions in pump prices and a lack of competitive response from other firms.
This trend has not only strained the wallets of UK drivers but has also sparked concerns about transparency in fuel pricing. To address this, the CMA has proposed a new fuel finder scheme that will enable drivers to access live, station-by-station fuel prices directly on their phones or satnavs.
The fuel finder scheme would leverage new compulsory open data requirements, with the aim to revamp competition in the retail road fuel market. At present, drivers can only compare prices at petrol stations themselves. But the scheme would require fuel retailers to provide up-to-date pricing in an accessible format that third-party apps like satnavs or map apps can utilise. This innovation would mean an end to driving around to find the best fuel prices.
Coupled with this scheme, the CMA has recommended a ‘fuel monitor’ oversight body. This body would be responsible for ongoing price and margin scrutiny, ensuring that the fuel retail industry is held to account. Notably, after the interim update from the CMA in May 2023, large parts of the UK saw a decrease in the average price of road fuel, showcasing the potential benefits of such scrutiny.
In light of the UK’s transition to net zero, the role of the fuel monitor becomes even more crucial. As demand for petrol and diesel falls, understanding the impact on vulnerable consumers who rely on petrol and diesel for longer, as well as those in areas with limited choice of fuel stations, will be vital.
The CMA’s CEO, Sarah Cardell, stated that they are ready to work with the UK government to implement these proposals as soon as possible. According to her, “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this”.
Apart from this, Asda has been fined £60,000 by the CMA for failure to provide the required information in a timely manner. Despite this, Asda continues to be one of the cheapest places to buy fuel, along with other supermarkets such as Morrisons, Sainsbury’s, and Tesco.
So, as we look towards the future, drivers in the UK can anticipate more competition, transparency, and potential savings at the pump. With these proposed changes, the typical family car driver could save up to £4.50 a tank within a short 5-minute drive from their preferred fuel station.
The new fuel finder scheme is set to revolutionise how drivers find and buy fuel, ensuring fairer pricing and helping UK motorists to save money.