Motorists across the United Kingdom are being consistently overcharged when filling up their vehicles, according to a stark new warning from the competition watchdog.
Persistently High Margins Hit Drivers' Pockets
A recent analysis by the Competition and Markets Authority (CMA) has found that the gap between what fuel retailers pay and what they charge customers remains "persistently high." This is despite a recent fall in the wholesale cost of petrol and diesel.
The report, covering the period from November 2024 to October 2025, shows the average price of petrol was 135 pence per litre (ppl). While this is 8 ppl lower than the year before, and diesel averaged 142 ppl (also down 8 ppl year-on-year), the CMA states the benefit to consumers has been limited.
Dan Turnbull, the CMA's senior director of markets, stated: "Fuel margins remain at persistently high levels – and our new analysis shows operating costs do not explain this." He emphasised that weak competition in the sector is preventing drivers from seeing fairer prices at the forecourt.
Fuel Finder Scheme Aims to Empower Motorists
The warning comes ahead of the imminent launch of a new government-backed 'fuel finder scheme'. This initiative is designed to help drivers locate the cheapest fuel in their area, thereby increasing market competition and putting downward pressure on prices.
"We know fuel costs are a big issue for drivers," Turnbull added, highlighting the particular strain during festive travel periods. "This is why the fuel finder scheme is crucial – it will put power back in the hands of motorists and save households money."
Industry Claims Rejected as Drivers Demand Fairness
The retail fuel industry has previously argued that rising operating costs justified higher margins. However, the CMA has explicitly rejected this claim, stating these costs do not explain why margins remain elevated compared to historic levels.
Simon Williams, head of policy at the RAC, echoed the CMA's findings, saying many drivers will be unsurprised by the report given widespread complaints about significant regional price variations.
"The fuel retailers trade association has claimed that rising operating costs were the reason for average margins on petrol and diesel being higher, but this has now been clearly rejected by the CMA," Williams stated. He expressed hope that the combined effect of the new fuel finder tool and continued CMA scrutiny will finally lead to more competitive pricing nationwide.
