The CMA (Competition and Markets Authority) is calling on the government to introduce an ‘enhanced interim voluntary scheme’ for its PumpWatch fuel price transparency plan while it waits for legislation to come into force.
In its Third Interim Motoring Update, the CMA said the proposed introduction of the Digital Information and Smart Data Bill by the new government could provide the legislative basis to set up a compulsory and comprehensive scheme but as it may take time, an enhanced voluntary scheme would enable motorists ‘to benefit from quicker, easier access to fuel prices through everyday apps sooner’.
The CMA said: “We encourage the government to implement our market study recommendations in full. Reflecting the time that it could take for the necessary legislation to be passed, in the interim we encourage the government to consider setting up a transitional, voluntary, scheme that goes beyond the current temporary pricing data scheme and is as close as possible to the final scheme.
“Having an enhanced fuel finder scheme in place, even on a transitional basis, should be a catalyst to address the concerning weakened competition we continue to observe in the retail market. The CMA stands ready to support the government in such action.”
In its update the CMA has found that:
• Retailers’ fuel margins are still significantly above historic levels.
• Supermarkets’ fuel margins are roughly double what they were in 2019.
• The total cost to all drivers from the increase in retail fuel margins since 2019 was over £1.6bn in 2023 alone.
• Competition among fuel retailers is failing consumers, just as it was in July last year, when the CMA published its road fuel market study.
When the CMA published its original study, it recommended that a smart data driven fuel finder scheme be set up to make prices available to motorists across the UK in real time, such as through map apps and satnavs. This would be backed up with ongoing monitoring by the CMA to hold the sector to account. It said the scheme could save drivers up to £4.50 each time they fill up, as it would make it easier to find cheaper fuel in their area.
The CMA is currently monitoring developments in the fuel market using information provided voluntarily by fuel retailers. It has created a temporary price data-sharing scheme, and says it is positive that some major players have started to integrate this into consumer-facing products, like apps. However, the current scheme covers only 40% of fuel retail sites and is not comprehensive enough to be utilised by map apps or satnavs to bring accurate, live information to people – and this is what would have a substantial impact on the market.
Reacting to the Interim Monitoring Update, Gordon Balmer, executive director of the Petrol Retailers’ Association, said that the CMA’s analysis does not take into account the complexities of fuel retailing.
“PRA members are committed to keeping pump prices as low as possible and operate in a highly competitive environment which is affected by a range of factors, including cost increases for retailers and geopolitical events,” he said.
“We support any sensible measures that lower prices for consumers, including continuing the 5ppl cut and the fuel duty freeze, which accounts for more than 30% of the pump price. In the meantime, we suggest motorists use petrolprices.com to check for the cheapest fuel available,” he added.
