Motorists are paying more for fuel than they should because retailers' profit margins remain “stubbornly high”, the competition watchdog has said.
The Competition and Markets Authority (CMA) said seller margins – the difference between what a retailer pays for its fuel and what it sells it for – remained above historic levels, even as prices fuel prices have fallen since July.
Supermarket margins increased to 8.1% in August from 7% in April.
The CMA added that the “sustained” increase was concerning and that there was not enough competition in the fuel market, which continued to drive up prices.
Margins on fuels excluding supermarkets increased to 10.2% in August from 7.8% in April, the watchdog said.
“While fuel prices have fallen since July, drivers are paying more for fuel than they should as they continue to be squeezed by stubbornly high fuel margins,” said Dan Turnbull, senior director markets at the CMA.
“We therefore remain concerned about the low competition in the sector and its impact on prices at the pump,” he added, especially as the cost of living remains high.
“The more people save on fuel, the more they have to spend in other areas,” he said.
