- Competition and Markets Authority (CMA) found drivers paid £1.6 billion too much for their fuel in 2023
- Supermarket margins roughly double 2019 levels
- Motorists could potentially save up to £4.50 each time they fill up via a fuel finder app
Danni Hewson, AJ Bell head of financial analysis, comments on the CMA's investigation into fuel prices:
“The basic tenet of competition is that rivals try to elbow their way to success by offering better value for money than their competitors.
“Asda had always been the supermarket with the sharpest elbows, offering fuel at the cheapest price, forcing others to keep their offer in a similar ballpark. But the CMA has been concerned about changes in the sector since Asda was snapped up by private equity in a process that began in 2020.
“The year before the takeover, the amount of cash being made on fuel sales by supermarkets was almost half of the level it currently is. That equates to motorists forking out roughly £1.6 billion more for their fuel in 2023 than they otherwise would have.
“The competitions watchdog has been concerned about the impact the changes have had on consumers for a number of years and had persuaded some retailers to share price data in a bid to give motorists a heads up on the cheapest deals.
“But that’s had little impact and the new government is being pushed to move ahead with legislation that would make real-time price sharing compulsory, data which could then be woven into sat navs and other apps.
“That could potentially save motorists more than four quid each time they fill up. But dotting the i’s takes time and the CMA is hyper aware that in the interim the consumer is losing out.
“Expanding the current voluntary scheme could help bridge the gap but motorists who’ve borne the brunt of geopolitically inspired price hikes will be understandably chagrined to find that fuel retailers have not been sharing the pain.”
