• Publish Your article
  • Editorial Policy
  • Contact
  • Advertise
Tuesday, July 1, 2025
No Result
View All Result
UK Herald
  • Home
  • Politics
  • Business
  • Entertainment
    • All
    • Sports
    England rugby stadium Twickenham given new name after more than 100 years in shock new deal

    England rugby stadium Twickenham given new name after more than 100 years in shock new deal

    Peter Morgan dead at 65: Former Wales and Lions rugby star who became a politician passes away as club pays tribute

    Peter Morgan dead at 65: Former Wales and Lions rugby star who became a politician passes away as club pays tribute

    Horse racing tips: Unexposed Group 1 contender can stun the big guns at 14-1

    Horse racing tips: Unexposed Group 1 contender can stun the big guns at 14-1

    Woman ‘raped seven times by two French rugby stars who left her riddled with bite marks & with horror injuries’

    Woman ‘raped seven times by two French rugby stars who left her riddled with bite marks & with horror injuries’

    Horse racing tips: Gary Moore’s charge can gain revenge after falling last time out

    Horse racing tips: Gary Moore’s charge can gain revenge after falling last time out

    Ian Buckett dead at 56: Former Wales rugby star who was ‘admired and feared equally’ dies as tributes pour in

    Ian Buckett dead at 56: Former Wales rugby star who was ‘admired and feared equally’ dies as tributes pour in

    Horse racing tips: Bash the bookies with these longshots including 9-1 fancy

    Horse racing tips: Bash the bookies with these longshots including 9-1 fancy

    Shayne Philpott dead at 58 – New Zealand All Blacks rugby legend dies after suffering ‘medical event’

    Shayne Philpott dead at 58 – New Zealand All Blacks rugby legend dies after suffering ‘medical event’

    Horse racing tips: This 7-1 chance appears to have been laid out for race he won last year

    Horse racing tips: This 7-1 chance appears to have been laid out for race he won last year

  • Lifestyle
    • All
    • Fashion
    • food
    • Health
    • Travel
    Is it safe to travel to Turkey? Latest Foreign Office advice as wildfires rage in Izmir

    Is it safe to travel to Turkey? Latest Foreign Office advice as wildfires rage in Izmir

    I grew up in Yorkshire — here’s my insider’s guide to a weekend in the Dales

    I grew up in Yorkshire — here’s my insider’s guide to a weekend in the Dales

    All the food and drink banned on EasyJet, Ryanair, Jet2 and TUI flights

    All the food and drink banned on EasyJet, Ryanair, Jet2 and TUI flights

    ‘Just gorgeous’: Your favourite European islands that aren’t in Greece

    ‘Just gorgeous’: Your favourite European islands that aren’t in Greece

    ‘Charming’ city in Spain is a lesser-known gem with £40 flights and ‘hardly any tourists’

    ‘Charming’ city in Spain is a lesser-known gem with £40 flights and ‘hardly any tourists’

    Anti-tourism protesters have an important message — and it’s not for tourists

    Anti-tourism protesters have an important message — and it’s not for tourists

    ‘Ambitious’ new sleeper train will connect 100 European cities — with private rooms from £67

    ‘Ambitious’ new sleeper train will connect 100 European cities — with private rooms from £67

    Unassuming UK village is an absolute gem for foodies with ‘exceptional’ restaurants

    Unassuming UK village is an absolute gem for foodies with ‘exceptional’ restaurants

    TUI relaunches UK flights to forgotten year-round sunshine destination after 3 years

    TUI relaunches UK flights to forgotten year-round sunshine destination after 3 years

    New Alternative Treatments for Erectile Dysfunction

    New Alternative Treatments for Erectile Dysfunction

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Health
  • Opinion
  • Science
  • Tech
  • Crypto
  • Travel
  • Real Estate
  • Sports
  • More
    • Press Release
UK Herald
No Result
View All Result

Fuel prices: Weak competition sees motorists pay £900m more for petrol and diesel, watchdog warns

by Justin Marsh
July 5, 2023
0
0
SHARES
Share on FacebookShare on TwitterReddit

Reduced competition and increased supermarket profit margins led to drivers paying an extra 6p per liter for fuel last year.

And increased profits on diesel prices, vital to the road haulage industry, have cost drivers an extra 13p per liter between January and May.

Asda and Morrisons have taken “a less aggressive approach to pricing” since 2019, according to a report into forecourt pump prices by the UK’s competition watchdog.

Both companies have, in the past, driven competition by acting as price leaders selling the cheapest petrol to attract customers forcing others to lower prices to match them.

However, an investigation found that they have increased their profit margins by charging higher prices and not reducing them as quickly when oil prices – cited as the main reason for expensive fuel costs – came down. Rival supermarkets, including Tesco and Sainsbury’s, followed similar pricing patterns.

Sarah Cardell, chief executive of the watchdog – the Competition and Market’s Authority – said competition on petrol station forecourts “was not working as well as it should” and called for reforms.

The CMA estimated that the financial impact of the 6p per liter increase in average supermarket fuel margin from 2019 to 2022 resulted in a combined additional cost of around £900m for customers of the four supermarket fuel retailers in 2022 alone. This is equivalent to approximately £75m a month for this period.

#color-context-related-article-2373848 {–inews-color-primary: #F88379;–inews-color-secondary: #FEF2F1;–inews-color-tertiary: #F88379;}

Related Article

Asda promises to be consumers 'champion' after £2.23bn petrol forecourt deal
Business

Asda promises to be consumers ‘champion’ after £2.23bn petrol forecourt deal

Read more

The CMA said it was also concerned that “variable pricing” patterns in local areas meant consumers in parts of the country are paying “significantly more” for fuel than others. And it slated weak price competition at motorway services where it found prices were around 20p per liter more for petrol and 15p more for diesel compared to other fuel outlets.

It called for the setting up of an open data fuel finder scheme, which would let customers better check the price of fuel in their area, after a similar scheme was successfully piloted in Northern Ireland.

The CMA has also proposed that a new “fuel monitor” oversight body be set up to probe prices and margins “on an ongoing basis and recommend further action if competition continues to weaken in the market”.

It pointed out that the average price of fuel fell in large parts of the UK after it published interim reports on the issue on three occasions.

The CMA said it fined Asda £60,000 for failing to co-operate fully with its investigation. The two fines of £30,000 – the maximum permitted – were for failing to respond completely to a compulsory written request for information and then sending a representative to attend a compulsory CMA interview “who was not equipped to provide evidence on certain topics the CMA had identified in advance.”

Asda has been approached for comment.

Ms Cardell said: “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this. This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.

“We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices so retailers have to compete harder for their business. This is why we are recommending the UK Government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time.

“This would end the need to drive round and look at the prices displayed on the forecourt and would ideally enable live price data on satnavs and map apps.

“Given the importance of this market to millions of people across the UK, this needs to be backed by a new fuel monitor function that will hold the industry to account. As we transition to net zero, the case for ongoing monitoring of this critical market will grow even stronger, so we stand ready to work with the UK Government to implement these proposals as quickly as possible.”

The RAC welcomed the findings. Its fuel spokesperson 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.”

Asda said: “The CMA’s comprehensive road fuel market review recognized Asda as the price leader and confirmed the presence of an Asda petrol station in a local area keeps prices down for all motorists. Despite record inflation, we have carefully managed our business to ensure Asda was the cheapest traditional supermarket for both groceries and fuel throughout the period reviewed by the CMA and this position is unchanged.

“The penalty notices relate to two individual alleged technical breaches in the way information was shared with the CMA over a 12-month period, during which time a significant number of documents were shared with the CMA to aid their study and we engaged fully with their enquiries. As the price leader in the supermarket fuel sector, we welcome any initiative that makes it easier for motorists to compare fuel prices, such as an app or other technology-based solutions.”

Source

Tags: 900mcompetitiondieselfuelmotoristspaypetrolpricesseeswarnswatchdogWeak

Related Posts

Petrol Prices Near Four-Year Low

Petrol Prices Near Four-Year Low

by Justin Marsh
June 6, 2025
0

Motorists are paying the lowest price for petrol in four years access to latest rac data.Petrol Prices fell 2p a litre in may, the third conscious month of falling prices and the...

Hot wheels could request your car as a die-cast model

Hot wheels could request your car as a die-cast model

by Justin Marsh
May 31, 2025
0

Your car could become the next hot to the wheel-cash scale model, as the legends tour returns for 2025. Now in an its eight year, the hot wheels legends tour is a...

New Renult 4 EV to Cost £ 3,000 Less Than Rival Ford Puma

New Renult 4 EV to Cost £ 3,000 Less Than Rival Ford Puma

by Justin Marsh
May 28, 2025
0

Prices for the new renewal 4 e-tech has been announce-and the electric crossover will undercut key rivals in a competitive market. When order books open in July this year, the reborn, fully...

New 2026 Toyota Rav4 Revealed – Including Hot 300HP GR Sport

New 2026 Toyota Rav4 Revealed – Including Hot 300HP GR Sport

by Justin Marsh
May 25, 2025
0

The wraps are off the sixth-generation toyota Rav4. The new family suv delivers improved hybrid effectiense, and comes with toyota's arene infotainment system. Since the original Rav4 was launched in 1994, toyota...

Certas Energy Appoints a New Head of Fuel Cards

Certas Energy Appoints a New Head of Fuel Cards

by Justin Marsh
May 22, 2025
0

Certas Energy has appointed andrew goodwin (picture) as it's new head of fuel card, with time shepherd retiring after five years in the role. Goodwin is re-joining the company after working for...

Car Rental Firm Says Ev Demand Up 139% in a year

Car Rental Firm Says Ev Demand Up 139% in a year

by Justin Marsh
May 19, 2025
0

Car Rental Firm Europcar Reports EV RENTAL DAYS ROCKETED from 228K in 2023 to more than 1.2 million days in 2024 - A 139 Percent Increase. Europcar's 280,000-Scrong Fleet Also Now Comprises...

Next Post
Best Hairdresser in London Samet Zili

Best Hairdresser in London Samet Zili

Popular News

AXIOM-4: What will be the role of Shubhanshu Shukla in the mission? What did India send in space? What will India benefit?

AXIOM-4: What will be the role of Shubhanshu Shukla in the mission? What did India send in space? What will India benefit?

July 1, 2025
UK and US publishers back move to block AI scrapers by default

UK and US publishers back move to block AI scrapers by default

July 1, 2025
Labour can’t just throw money at nuclear and hope it works

Labour can’t just throw money at nuclear and hope it works

June 30, 2025
Is it safe to travel to Turkey? Latest Foreign Office advice as wildfires rage in Izmir

Is it safe to travel to Turkey? Latest Foreign Office advice as wildfires rage in Izmir

June 30, 2025
Tesla Car Factory arrives at the owner’s house without a driver: the price of auto drive cars will be shocked

Tesla Car Factory arrives at the owner’s house without a driver: the price of auto drive cars will be shocked

June 29, 2025
Week-in-Review: Welfare rebellion has permanently damaged Starmer

Week-in-Review: Welfare rebellion has permanently damaged Starmer

June 28, 2025
I grew up in Yorkshire — here’s my insider’s guide to a weekend in the Dales

I grew up in Yorkshire — here’s my insider’s guide to a weekend in the Dales

June 27, 2025
UK Herald

All Rights Reserved © UK HERALD - The Voice of UK

Important Links

  • Publish Your article
  • Editorial Policy
  • Contact
  • Advertise

...

No Result
View All Result
  • Home
  • Politics
  • UK News
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Health
  • Food

All Rights Reserved © UK HERALD - The Voice of UK