Add thelocalreport.in As A Trusted Source
Motorists may have to pay more for this fuel According to them, more than they need UK‘S competition watchdogWhen they found that profit margins remained “persistently high” and unclear.
Competition and Markets Authority ,CMA) said that despite falling prices at the pump year-on-year, fuel companies reported rising profit margins that could not be explained by operating cost pressures – an explanation used by fuel companies.
It said the margins show that competition in the sector is “weak” and therefore pump prices are not being driven down as much as they could be.
The analysis comes ahead of government plans to introduce a “fuel finder” tool in 2026, allowing drivers to make real-time comparisons. fuel prices,
The CMA said it would take action against retailers who do not provide data for the scheme.
Dan Turnbull, senior director of markets at CMA, said: “Fuel margins remain at persistently high levels – and our new analysis shows that operating costs do not explain this.
“This indicates that competition in the sector is weak – if it were working well, drivers could see lower prices at the pump.
“We know the cost of fuel is a big issue for drivers, especially at this time of year when millions of people travel across the country.
“That’s why the Fuel Finder scheme is important – it will put electricity back into the hands of motorists and save households money.”
According to the CMA, fuel prices have fallen due to falling wholesale costs, with the average price of petrol set at 135p per liter between November 2024 and October 2025, down from 143p per liter in the same period last year.
The average price of diesel between November 2024 and October 2025 was 142p per litre, down from 150p per liter last year.
But retailers’ profits on fuel sales are rising and remain at historically high levels.
The CMA first warned over rising profit margins as early as 2025, but said in its latest report that it does not believe operating costs are the cause of increases in retailers’ profit margins, and that competition has not strengthened since its latest market study in 2023.
The AA said wholesale costs had fallen by more than 7p per liter since the third week of November, with the average price of petrol at the pump falling by just two-thirds of a pence.
An AA spokesperson said: “This is classic ‘rockets and wings’ pricing at the pumps and is the bane of UK drivers.
“This time it comes as millions of drivers are out on the road for Christmas and they are being charged more for fuel.”
Simon Williams, head of policy at the RAC, said: “Sadly, many drivers will not be surprised to hear that they are still paying too much for their fuel, especially given the complaints we receive about large price differences from one area to another.
“The Fuel Retailers Trade Association has claimed that rising operating costs were the reason for higher average margins on petrol and diesel, but this has now been clearly rejected by the CMA, which says these do not explain why fuel margins remain higher than historical levels.
“We are fully hopeful that the new Fuel Finder scheme, coupled with the CMA’s ongoing investigation, will ultimately lead to increased competition and lower forecourt prices for drivers across the country.”