The UK Competition and Markets Authority (CMA) has released its first annual road fuel monitoring report, revealing that fuel margins for retailers are at persistently high levels, despite a decrease in pump prices over the past year. The report indicates that operating costs do not account for these high margins, suggesting weak competition in the fuel retail sector.

According to the CMA, the average price of petrol and diesel has decreased, yet fuel margins remain above historic levels. For supermarket fuel retailers, margins have decreased slightly, while non-supermarket retailers have seen an increase in margins. This trend raises concerns about the competitive dynamics within the road fuel market.

The CMA's analysis challenges claims from some retailers that high margins are due to rising operating costs. Instead, the report shows that operating profit margins for large retailers are increasing, contradicting the narrative that costs are driving up prices.

To address these issues, the CMA is set to launch a 'fuel finder' scheme next year, allowing drivers to compare real-time fuel prices through various platforms. This initiative aims to empower consumers and stimulate competition among retailers. The CMA has also published enforcement guidance to ensure compliance with the new regulations surrounding the fuel finder scheme.