Drivers ‘paid nearly £1,000,000,000 more for fuel due to increased margins’
Supermarkets ‘overcharging’ customers for fuel saw drivers pay almost £1 billion more than they needed to.
An investigation carried out by watchdog the Competition and Markets Authority (CMA) found that on average, fuel margins at Asda, Tesco, Sainsbury’s and Morrisons rose by 6p per litre over the last three years.
It was estimated this in total led to an extra combined cost of ‘around £900 million’.
It also found for diesel specifically, drivers were paying an extra 13p per litre during the first five months of 2023.
The chief executive of the CMA, Sarah Cardell, said: ‘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 6p 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.
‘We need to reignite competition among fuel retailers.’
As a result of the investigation, Asda was fined £60,000 for failing to provide relevant information in a timely manner.
The regulator recommended – in order to prevent this happening again in future – that the government introduces legislation which enforces the provision of up-to-date and accessible pricing information.
Drivers could use apps or sat navs to compare pump prices at different sites, in order to increase competition.
The CMA further recommended a new fuel price monitoring body to be introduced.
Organisations such as FairFuelUK have also long called on the government to bring in these measures.
Howard Cox, founder of the lobbying group, said: ‘Low income motorists and particularly diesel drivers are still being ruthlessly ripped off at the pumps. This unchecked chronic profiteering can only be halted by introducing our long called for PumpWatch.
‘A huge disappointment from the March 15 Budget was that the chancellor, despite promises he would, did not mention the need for an independent pump pricing watchdog that would ensure filling up costs would be transparent, honest, and fair.
‘But the VAT keeps pouring into the Treasury, so why change anything? This duplicity has to stop, for the sake of the economy and UK’s 37 million drivers.’
Grant Shapps, the secretary of state for energy security and net zero, previously said: ‘We won’t stand for motorists being treated like cash cows and ripped off at the pumps.
‘Fuel prices are falling so there is absolutely no excuse for retailers to not pass those savings on.
‘Supermarket bosses must fully cooperate with the watchdog’s investigation and if they refuse to play ball I won’t hesitate to take action.’
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