Fuel retailers continue to overcharge drivers, claims regulatory body.
## UK's Road Fuel Retail Market: High Margins and Weak Competition
The UK's road fuel retail market is currently grappling with high fuel margins, a situation that is causing elevated fuel prices for consumers. According to the Competition and Markets Authority (CMA), retail spreads for both petrol and diesel are more than double their averages from 2015-2019, indicating a lack of competition within the market [1][4].
### Rising Fuel Margins
In May 2025, the average price for petrol in the UK was 132.0p per litre, with diesel standing at 138.4p per litre. Non-supermarket fuel margins peaked at 10.4% in March 2025, surpassing those of supermarkets [1]. This suggests varying levels of competition within the sector, which contributes to sustained high prices at the pump.
### Government's Initiatives
In an effort to address this issue, the government has announced plans to launch a 'fuel finder' scheme by the end of 2025. This initiative aims to encourage competition among retailers by providing real-time price comparisons via apps and tools [1]. The scheme is part of broader efforts to improve market efficiency under the Digital Markets, Competition and Consumers Act 2024.
### Impact on Consumers
The high fuel margins and weak competition in the UK's road fuel retail market directly impact consumers by keeping fuel prices elevated. This situation increases household expenses and affects business operations. The government's initiative to enhance transparency and competition is designed to reduce these margins and provide consumers with better deals on fuel [1].
### Future Outlook
The introduction of the 'fuel finder' scheme is expected to boost consumer awareness and potentially lead to lower retail margins as retailers respond to increased competition. The CMA, which is currently investigating the fuel retail sector, has stated that overall competition in the UK's road fuel retail market remains 'weak' [2]. Despite lower prices at the pump, retailers' margins - the difference between what they pay for fuel and what they sell it at - remain high compared to historic levels [3].
Moreover, AA president Edmund King has expressed concern over increased fuel costs having a major influence on inflation, while the RAC and the AA have expressed disappointment over drivers paying high prices at the pumps [5][6]. The RAC head of policy, Simon Williams, expressed disappointment that drivers have paid over the odds for fuel [7].
In light of these concerns, the launch of the Government-backed Fuel Finder scheme is eagerly awaited as it promises to bring greater transparency and competition to the UK's road fuel retail market.
Sources: [1] BBC News, "Government to launch fuel finder app to help drivers", 12 May 2025,
The high fuel margins in the UK's road fuel retail market, despite the government's initiative to launch a 'fuel finder' scheme, indicate a prevalence of weak competition and a potential impact on both consumers and businesses in the industry and finance sectors. This complexity in the energy market underscores the need for continued regulation and oversight to ensure fair competition and reasonable prices.
