The UK Competition and Markets Authority (CMA) has released a report indicating that drivers are facing higher fuel prices at the pump, with petrol averaging 133.9 pence per litre and diesel at 141.9 pence per litre from May to August 2025. These increases are attributed to rising oil prices and refining spreads influenced by global market factors.

Significantly, the report highlights that fuel margins for retailers have surged, with supermarket margins increasing to an average of 8.4% in the first half of 2025, compared to just 4% in 2017. Non-supermarket retailers also saw their margins rise to 9.8% from 6.4% in the same timeframe. This trend raises concerns about the competitiveness of the fuel market.

The CMA's monitoring report also examined retail spreads, which reflect the difference between the price consumers pay and the benchmark price retailers pay for fuel. Although retail spreads for petrol and diesel have decreased slightly, they remain significantly higher than historical averages, indicating ongoing market issues.

In response to these findings, the CMA has recommended a Fuel Finder scheme to the government, aimed at empowering consumers with real-time pricing data to foster competition among retailers. The government plans to launch this scheme by the end of the year, which will allow drivers to compare fuel prices through various platforms.

The CMA has established a statutory monitoring function to continuously oversee fuel prices and ensure competition in the market. This includes gathering data from retailers to produce regular reports, with a comprehensive review of fuel retailer operating costs expected in the CMA's annual road fuel monitoring report later this year.