Friday, April 19, 2024
Energy Transition Outlook Report 2023
HomeRenewablesCompetition and Markets AuthoritySupermarket fuel margin hike costs UK drivers £900m

Supermarket fuel margin hike costs UK drivers £900m

Customers of four supermarket fuel retailers have collectively shouldered nearlt £900 million in additional costs in 2022, as revealed by a report from the Competition and Markets Authority (CMA).

The study highlights the rise in fuel retail margins and the weakened competition in the market, leading to higher prices for consumers.

According to the CMA, retail margins in the fuel sector have witnessed a significant increase since 2019, with supermarkets following a similar upward trend.

Low-cost supermarkets have traditionally set the pace in terms of competition, with other retailers, both supermarkets and non-supermarkets, following suit.

The impact of these factors has led to drivers paying more for fuel than they otherwise would.

The CMA estimates that the 6 pence per litre (ppl) increase in the average supermarket fuel margin from 2019 to 2022 has resulted in an additional cost of approximately £900 million for customers of the four supermarket fuel retailers in 2022 alone, equivalent to around £75 million per month.

Diesel drivers have particularly felt the impact in 2023, as increased margins have caused them to pay an average of 13ppl more for diesel between January and May.

RAC fuel spokesman Simon Williams said: “This is a landmark day when it comes to fuel prices in the UK. The fact that drivers appear to have lost out to the tune of nearly £1bn as a result of increased retailer margins on fuel is nothing short of astounding in a cost of living crisis and confirms what we’ve been saying for many years that supermarkets haven’t been treating drivers fairly at the pumps.

“It’s all about action now and we very much hope the government follows through with both of the CMA’s recommendations.

“While forcing retailers to publish pump prices is a positive step for drivers, what’s of far more significance is the creation of a fuel monitor function within government which, we very much hope, actively monitors wholesale prices to ensure forecourts don’t overcharge when the cost they pay to buy fuel drops. Without this, we fear drivers will continue to get a raw deal.”

Energy Live News
Energy Live Newshttps://www.energylivenews.com
This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
RELATED ARTICLES
- Advertisment -
Energy Jobline LinkedIn

Most Popular

Recent Comments