Passive fuel pricing strategies contributing to “real pressure on drivers’ pockets,” warns CMA

In its latest Road Fuel Monitoring report, the Competition and Markets Authority (CMA) has warned of a “lack of effective competition” in the fuel market.

The CMA said it is concerned that fuel retailers continue to use passive pricing strategies, contributing to sustained high margins.

Analysis found that some retailers did not immediately pass reductions in wholesale diesel prices onto drivers, a move which would have improved competition.

However, as in its previous report, the CMA said that there is no evidence fuel retailers changed pricing strategies to take advantage of the events in the Middle East.

The CMA will continue to actively monitor the fuel market, and will publish its next report in the autumn.

Sarah Cardell, chief executive at the CMA, said: “We know prices at the pump are putting real pressure on drivers’ pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East. 

“We will continue to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers. 

“In the meantime, Fuel Finder can help drivers save money when they fill up. The more motorists make use of Fuel Finder-backed services, the better it works – saving money now and driving down prices in the long run.”