The Competition and Markets Authority (CMA) has released an update on the road fuel market study, highlighting concerns over a decline in competitive intensity in the retail of petrol and diesel.
The CMA acknowledges that during the observed period, pump prices for both petrol and diesel increased, with two distinct periods identified.
The first increase occurred in June, July and August, primarily due to global factors such as higher crude oil prices and refining spreads.
During this time, retail spreads for petrol were close to the long term average and for diesel, they were below that level.
However, in September and October, significant increases in retail spreads for both petrol and diesel were noted, raising concerns about the competitive intensity in the sector.
The data suggests that if retail spreads remain at these levels for an extended period, it could be a cause for concern.
Supermarket fuel margins have been higher in 2023 compared to previous years on a percentage basis, but slightly down on a pence-per-litre basis due to lower wholesale costs.
Despite a decline in margins from May to August, they remain above pre-2021 levels, the CMA concludes.
RAC fuel spokesperson Simon Williams said: “It’s very disappointing that the CMA has found that major fuel retailers are still taking far bigger margins than they have done in the past, something we have been saying for a long time, as this means drivers are still being taken advantage of at the pumps.
“While supermarket margins may have fallen in the summer, our latest data shows they have more than made up for this since then and are currently taking very large margins.”
