The Competition and Markets Authority (CMA) has highlighted that retail margins for fuel in Britain are still significantly higher than historical levels. The CMA has called for the government to implement a price comparison scheme to address this issue.
In its recent update, the CMA noted that retail fuel prices have remained high compared to previous years. The watchdog emphasized the need for a mandatory fuel finder scheme to provide drivers with instant access to prices and to monitor fuel prices effectively.
According to the CMA, petrol retail spreads have averaged 12.62 pence per litre, while diesel retail spreads have averaged 17.91 pence per litre in the four months leading up to June. These figures are more than double the averages from 2015 to 2019.
The CMA estimates that the increase in retail fuel margins has cost drivers over £1.6 billion in 2023 alone. This higher margin also results in increased VAT on fuel, which accounts for 20 percent of all costs.
The watchdog acknowledged that operating costs have continued to rise but stated that they have not been a significant factor in the increase in fuel margins for large retailers. The CMA plans to reassess this issue when it assumes its new role as a monitoring body with compulsory information-gathering powers.
Last year, the CMA recommended a mandatory fuel finder scheme to provide real-time access to fuel prices for drivers. While legislation for this scheme was not completed before the general election, the CMA has established a temporary voluntary scheme for retailers to provide price information.
The CMA has urged the government to implement a real-time fuel finder scheme to enhance competition among retailers and empower drivers to compare prices. The RAC motoring group expressed concern that drivers have been overcharged by fuel retailers and emphasized the lack of competition in the market.
The British Retail Consortium highlighted that supermarkets strive to offer value across all products, including food and fuel. The average petrol and diesel prices in Britain were also provided in the article.
In conclusion, the CMA’s call for a price comparison scheme and monitoring of fuel prices reflects ongoing concerns about high retail margins for fuel in Britain. The watchdog’s efforts to address this issue are aimed at promoting competition and ensuring fair pricing for drivers. Please provide an alternative version of the text.
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