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Fuel finder scheme could curb increasing fuel retailer profits, says CMA

Fuel margins for non-supermarket retailers were 10.4% in March 2025, up from 8.9% in January.

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The Government’s upcoming ‘fuel finder’ scheme could control increasing fuel retailer profits, according to the Competition and Market Authority (CMA).

Fuel margins for non-supermarket retailers were 10.4% in March 2025, up from 8.9% in January, while supermarket margins rose from 7.9% in February to 8.3% in March.

Dan Turnbull, senior director of markets at the CMA, said: “While there is uncertainty over how global events will impact the price of oil, our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months. 

“The Government committed to launching a ‘fuel finder’ scheme following our recommendation to help drivers compare real time prices and boost competition.

“Once launched, it will make it easier than ever to shop around and find the best deals.”

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The average fuel prices at the end of May were 132p per litre for petrol, and 138.4p per litre for diesel, a decrease of 7.6p and 8.4p respectively since February.

Retail spread (the average pump price compared to the price retailers buy fuel for), also increased, with the average retail spread for petrol at 15.4p per litre between March and May, 1.5p per litre higher than the previous four month period, and double the average seen between 2015 and 2019.

Simon Williams, head of policy at the RAC, said: “Drivers will be concerned to hear that retailer margins on fuel are still above where they have been historically and that competition remains weak.

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“Given fuel is a major expense for households, and with eight-in-10 drivers dependent on their cars, it’s disappointing to see they’ve paid over the odds yet again.

“We have to hope the launch of the Government-backed Fuel Finder scheme, due at the end of the year, will stimulate competition and finally lead to fairer pump prices.”

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The ‘fuel finder’ scheme will integrate with navigation apps, comparison websites, and in-car devices, allowing drivers to locate cheap fuel.

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