Drivers are being fleeced out of an extra £3 each time they fill their tank because of greedy petrol stations, analysis suggests.
The Competition and Markets Authority (CMA) today said that retailers’ fuel margins – the difference between what they pay for fuel and the price they sell it at – are ‘still significantly above historic levels’.
Increases in fuel margins cost drivers more than £1.6billion in 2023 alone, according to the watchdog.
Supermarkets’ fuel margins are now roughly double levels pre-Covid.
The RAC motoring group said drivers feel ‘ripped off’ by fuel retailers.
MailOnline analysis shows that supermarkets, in April, had a margin of 9.1p per litre, on average. This figure covers petrol and diesel.
For comparison, it stood at 3.7p in 2017.
It means that, for every 10litres purchased, consumers have to pay an extra 54p per litre to the retailer.
This amounts to between £2.70 and £3.24 for filling up a typical car, with a fuel tank of between 50-60litres.
Should a driver need to top-up their tank once a week, this would leave them almost £160 out of pocket over the course of a year.
But some forecourts offer a better price at the pump than others, even ones located just round the corner from each other.
Drivers of a typical family car could save up to £4.50 a tank by taking just a 5-minute detour, analysis by the CMA suggests.
It has demanded greater price transparency to let motorists shop around.
MailOnline has now plotted the prices of petrol and diesel at thousands of forecourts across the country.
Our interactive map allows you to see if you could fill your car up cheaper by making a short detour.
The figures come from 14 retailers participating in the CMA’s temporary pricing data scheme, which covers around 40 per cent of UK forecourts and 65 per cent of fuel sold.
The 14 retailers on the scheme are:
- Asda
- Morrisons
- Sainsbury’s
- Tesco
- bp
- Esso Tesco Alliance
- Shell
- Applegreen UK
- Ascona Group
- JET Retail UK
- Moto
- Motor Fuel Group
- Rontec
- SGN
MailOnline’s interactive calculator can also show you how much extra you are paying to boost the profits of petrol and diesel giants compared with seven years ago.
The tool uses CMA data to calculate the difference in profit margins for both supermarket and non-supermarket forecourts but average fuel prices are not separated this way between the two.
Supermarket fuel retailers pocketed 9.1p in profit per litre in April this year compared with just 3.7p in 2017, according to CMA analysis.
For context, average petrol prices in 2017 and April 2024 were 117.59p and 148.85 per litre, so the fill-ups would have cost £58.79 and £74.42, respectively.
Simon Williams, head of policy at the RAC, said: ‘To see that drivers have paid £1.6bn more than they should have in the last year is nothing short of outrageous, especially when so many are dependent on their vehicles.
‘Drivers have every right to feel ripped off, especially knowing there is virtually no market competition between retailers.’
The CMA is now calling on the Government to use recent legislation to launch a compulsory scheme to ensure that fuel retailers share price information to allow motorists to compare forecourt deals.
The CMA launched a temporary price data-sharing scheme after its initial report found problems in the market, but said it is voluntary and only covers 40% of fuel retail sites across the UK.
Sarah Cardell, chief executive of the CMA, said: ‘Last year we found that competition in the road fuel market was failing consumers, and published proposals that would revitalise competition amongst fuel retailers.
‘One year on and drivers are still paying too much.
‘We want to work with Government to put in place our recommendation of a real-time fuel finder scheme to kick-start competition among retailers.
‘This will put the power in the hands of drivers who can compare fuel prices wherever they are, sparking greater competition.’
Increases in fuel margins cost drivers more than £1.6billion in 2023 alone, according to the competition watchdog
The CMA said a smart data, real-time fuel finder scheme would allow motorists to save up to £4.50 each time they fill up and would make it easier to find cheaper forecourts.
It 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… which the CMA would welcome.
‘Legislation – which is needed to establish the scheme fully – may take time to come into force.
‘So that motorists can start to benefit from quicker, easier access to fuel prices through everyday apps sooner, the CMA encourages the Government to introduce an enhanced interim voluntary scheme that is as close to the final scheme as possible.’
The British Retail Consortium said supermarkets look to offer value overall across food and fuel.
Its chief executive Helen Dickinson said: ‘Supermarkets remain focused on delivering the best overall value for their customers across all products that they sell, including food and petrol.
‘Retailers will continue to work closely with the CMA and provide the necessary data to allow consumers to find the best prices for petrol and diesel.’
