The government has pledged to ‘out’ rip off fuel sellers by forcing them to proved up to date information on what prices they’re offering. The move comes after growing anger at what has been described as ‘profiteering’ by major sellers including supermarkets.
Increased supermarket profit margins led to drivers paying an extra 6p per litre for fuel last year, the Competition and Markets Authority (CMA) said today. The CMA inquiry also recommended that the Government introduces legislation to enable a fuel finder open data scheme to be created, which could allow drivers to check pump prices through apps or sat navs.
Supermarket giant Asda was fined £60,000 by the CMA for failing to provide relevant information in a timely manner. In an announcement after the CMA report was revealed the government said retailers will be forced to provide up-to-date price information as part of new government scheme to call out rogue supermarkets and stations overcharging drivers at the pump.
The change means motorists will be able to easily compare fuel prices in real time to choose the best prices whilst boosting competition and in turn driving down prices. The Government took action after watchdog finds some supermarkets charged drivers 6p more per litre for fuel from 2019 to 2022 – meaning £900m in extra costs across the UK in 2022 alone.
The government will change the law to force retailers to comply by providing up to date price information, which is expected to lead to greater transparency and competition – in turn driving down prices and easing people’s cost of living.
The new scheme will make pricing data available for third parties – paving the way for them to create price comparison apps and websites – supporting the digital economy and helping growth.
The tough action by government follows publication of a Competitions and Markets Authority (CMA) report today showing some supermarkets charged drivers 6p more per litre for fuel. This amounts to £900m in extra costs in 2022 alone - around £75m a month.
Grant Shapps, Energy Security Secretary, said: “Some fuel retailers have been using motorists as cash cows – they jacked up their prices when fuel costs rocketed but failed to pass on savings now costs have fallen. It cannot be right that at a time when families are struggling with rising living costs, retailers are prioritising their bottom line, putting upwards pressure on inflation and pocketing hundreds of millions of pounds at the expense of hardworking people.”
Today I’m putting into action the CMA’s recommendations and standing by consumers – we’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.
“Jeremy Hunt, Chancellor of the Exchequer, said: “It isn’t fair that businesses are refusing to pass on lower prices to protect their profits while working people struggle with balancing their budgets. Consumers need to be treated fairly, and so we’re empowering drivers to find the best prices possible for their fuel by taking swift steps following the CMA’s recommendations.”
The CMA’s report found a concerning weakening of competition in the fuel market and an overall increase in retailers’ margins, especially in respect of diesel and with supermarkets the worst offenders. It also noted a lack of reliable and price information available to motorists.
The report recommends the mandatory public disclosure of fuel prices and establishment of a body to monitor the market, which the government has agreed to.
