UK’S MOTORISTS PAID HIGHER FUEL PRICES AFTER SUPERMARKETS INCREASED MARGINS

Mon 03 July 2023:

UK motorist have been paying more for fuel in the last four years as competition between retailers has weakened, according to a regulator.

It said that increased supermarket fuel margins have led to drivers paying an extra 6p per litre, The Express reported.

Major supermarket Asda was fined £60,000 for a failure to provide information when required, the regular said. Asda has now provided the necessary information.

This comes in the Competition and Markets Authority’s (CMA) final report of the fuel market.

As part of a year-long investigation, the watchdog examined whether there was “failure in competition”. This would cause customers to pay higher fuel prices than is necessary.

It reported that competition has “weakened” as Asda and Morrisons chose to increase the amount it makes on fuel.

Tesco and Sainsbury’s have priced by comparison to local competitors as opposed to responding to cost movements across the market.

However the regular said there was no evidence of “cartel behaviour” and an enforcement case will not be opened against supermarkets.

The CMA has said there should be a new, legally mandated system, requiring fuel providers to publish live data on fuel charges. This would enable consumers to see petrol station costs in real time on their phones or satnavs.

The government has said it would support this measure and change the law to force retailers to provide up to date price information.

A new fuel monitoring body has also been proposed by the CMA. Such a body would establish the fuel finder scheme.

The CMA had previously said supermarket fuel prices were roughly 5p more expensive per litre in 2022 than pre-pandemic levels and that factors beyond the invasion of Ukraine have impacted the price customers are paying at the pumps and weak competition has helped drive increases.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

______________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent