The UK Competition and Markets Authority (CMA) has reported that fuel margins for petrol and diesel remain at historically high levels, which continues to impact the prices drivers pay at the pump. Despite fluctuations in crude oil prices and refining spreads, the margins have not decreased significantly, indicating weak competition in the road fuel retail market.

As of February 2025, average petrol prices reached 139.6 pence per litre, while diesel prices were at 146.8 pence per litre, marking increases of 5.2 and 7.1 pence per litre respectively over the previous four months. The CMA's analysis shows that supermarket fuel margins decreased slightly but peaked at 8.9% in December 2024, while non-supermarket margins also fluctuated but remained high.

The CMA's study of retail spreads revealed that petrol and diesel retail spreads averaged 13.8 and 13.4 pence per litre respectively, which, although lower than previous periods, are still significantly above historical averages from 2015 to 2019. This suggests that while there are short-term fluctuations, the overall competitive intensity in the market remains low.

In response to these findings, the CMA has recommended the implementation of a new monitoring function and a 'fuel finder' scheme, which is expected to launch by the end of the year. This initiative aims to provide drivers with real-time fuel price comparisons, thereby fostering competition among retailers and helping to keep prices low.

The CMA's ongoing scrutiny of fuel prices will be bolstered by new powers under the Digital Markets, Competition and Consumers Act 2024, allowing for more comprehensive data collection from fuel retailers.