The government is planning to introduce its open data scheme for road fuel prices, requiring petrol station operators to share details of any price changes within 30 minutes, by the end of 2025. And, significantly, it has now also said that it will finance the initiative.
It plans to implement the Fuel Finder, previously referred to as Pumpwatch, as quickly as possible subject to the parliamentary process, said Ed Miliband, the Secretary of State for Energy Security in a letter to the Petrol Retailers’ Association (PRA) last week.
Miliband said that following recommendations from the Competition & Markets Authority (CMA), the government will be implementing the initiative to “help facilitate a competitive road fuels retail market, increase price transparency and protect consumer interests”.
Petrol station operators will be obliged to report price changes, as well as unavailability of fuel, to an external aggregator, which will provide them with guidance and training and will be procured by the government, with invitations to tender in early 2025.
To support petrol forecourts in complying with the requirements, there will be a variety of reporting methods available. Either the central office or individual petrol filling station will be able to report prices, said Miliband in the letter.
“Ensuring consumers have near real-time comprehensive information is important, but I am keen to ensure petrol filling stations can meet this requirement in a cost and resource-efficient way,” he said.
Under the arrangements, the data will be made available to the public including on navigation apps, in-car devices and comparison websites, helping motorists to seek out the cheapest fuel in their area. The idea is that this action will drive down pump prices by bringing greater transparency and competition to forecourts.
The CMA will enforce the programme and be able to impose civil financial penalties for non-compliance as set out in the Digital Markets, Competition and Consumers Act 2024: up to 1% of worldwide annual turnover, or a daily rate of up to 5% of daily worldwide turnover. This would be in addition to criminal offences, subject to fines, for exceptional circumstances.
Running alongside Fuel Finder will be the CMA’s monitoring function, which is already covered in the Digital Markets, Competition and Consumers Act 2024, and is set to start running by January 2025, the letter said.
The function will assess and monitor the state of competition in the market and alert the government if further intervention is needed to protect consumers. From this work, the CMA will publish quarterly reports, which will include one annual report with a focus on the state of competition in the petrol and diesel market, together with three shorter updates on prices, costs and margins.
The PRA’s executive director Gordon Balmer says that he welcomes the fact that the government will be covering the cost of Fuel Finder and not passing this on to petrol retailers. It has been actively involved in helping the CMA come up with a workable solution for forecourt operators. “We will continue to represent our members and co-operate with the government to ensure a smooth and practical implementation,” says Balmer.
The RAC says that it is pleased that progress has been made in this area. “This will help drivers get a fairer deal every time they fill up by enabling them to find the cheapest fuel near them and ensuring significant reductions in wholesale fuel prices are passed on to customers at the pumps,” says its head of policy Simon Williams.
