The CMA’s latest quarterly update on the fuel market highlighted concerns over passive pricing strategies
used by most retailers, which it said allowed profit margins to stay elevated despite falling wholesale diesel prices in May and June. The watchdog sent 1,166 warning letters and 53 compliance notices to retailers failing to register with the Fuel Finder scheme, which now covers 97% of petrol stations and 99% of fuel sold in the UK.
CMA’s Warning on Slow Price Adjustments
Despite average pump prices falling in June, the CMA noted they remained significantly higher than pre-Middle East conflict levels, with retailer margins at or above 2025’s historically high levels. Sarah Cardell, CMA chief executive, emphasized that any reductions in wholesale prices should be rapidly and fully passed on to drivers,
while urging motorists to use Fuel Finder to save money.
AA Criticizes Retailers for Lax Price Cuts
King also highlighted disparities between Northern Ireland and the rest of the UK, where petrol and diesel are sold for 8p less per litre on average. If fuel can be sold there at lower prices, then it seems drivers elsewhere aren’t being treated fairly,
he said, urging the CMA to compare pricing strategies across regions.
Fuel Finder’s Role and Limitations
Launched after the CMA’s 2023 recommendation, the Fuel Finder scheme aims to boost competition by allowing drivers to compare prices. However, the AA noted that some forecourts charge 10p per litre less than rivals, but average prices fail to reflect broader market trends. Simon Williams of the RAC called for the CMA to investigate why some retailers delay price cuts, stating that margins on fuel remain historically high, and competition is still lacking.
The scheme, run by the government and technology firm VE3, has seen 97% of petrol stations register, but the CMA has not yet issued fines. A review of the road fuel market is set for autumn, with the watchdog vowing to ensure customers pay fair prices across the UK.
Industry Response and Consumer Impact
Drivers face ongoing pressure as fuel costs remain high, with the CMA estimating that competition among retailers weakened since 2019, leading to drivers paying nearly £1 billion more for fuel at supermarkets. The watchdog’s report also noted no evidence of profiteering linked to the Iran war, but stressed that retailers are not taking advantage of the conflict in the Middle East.
What Comes Next for the Fuel Market
The CMA plans a detailed autumn review of the fuel market, which could lead to stricter enforcement if margins remain elevated. The watchdog has also called for greater transparency, with Sarah Cardell stating that our monitoring plays an important role in giving drivers confidence.
For now, drivers are advised to use tools like Fuel Finder to locate the cheapest prices. The AA and RAC continue to push for systemic changes, arguing that competition is still lacking
and that some retailers were deemed not to have reduced prices as quickly as they should have when the diesel wholesale price fell earlier in the summer.
