British drivers continue to be ripped off at fuel stations as petrol and diesel prices soar

At the end of May, the average price for a litre of petrol was 132p, while diesel drivers are paying an average of 138.4p for fuel.

This represents a significant drop in prices for drivers compared to the end of February 2025, with costs falling 7.6p per litre for petrol and 8.4p for diesel.

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Despite this, the CMA found that overall competition in the UK's road fuel market remains weak, with margins remaining similar to high levels seen in 2023.

All retailers saw their fuel margins increase, with supermarkets hiking margins from 7.9 per cent in February to 8.3 per cent in March.

Other major retailers followed suit, raising margins from 8.9 per cent at the start of the year to a significant 10.4 per cent three months later.

The CMA confirmed that it would undertake a review of fuel retailer operating costs later this year to assess whether fuel margins are being impacted.

Dan Turnbull, Senior Director of Markets at the CMA, said it remains to be seen whether conflict in the Middle East will continue to impact the price of oil.

He added: "Our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months."

In recent weeks, tensions between Israel and Iran have escalated, leading to the United States conducting bombing strikes on key nuclear facilities across Iran.

Iran retaliated with strikes on a US base in Qatar, although all missiles were intercepted. The Iranian parliament also voted to close the Strait of Hormuz, which would have major consequences for the flow of oil around the world.

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Figures from the US Energy Information Administration reveal that around 20 million barrels of oil flow through the Strait of Hormuz every day - equivalent to around 20 per cent of global petroleum liquids consumption.

If this route were to close, oil prices would likely spiral, with analysts suggesting the price of Brent crude oil could soar towards $100 (£73), which would also impact fuel prices.

Tensions have eased since the strikes, with a ceasefire declared, helping to stabilise oil prices and avoid any aftershocks in the fuel market.

In its most recent report, the CMA recommended a new monitoring function and fuel finder scheme to help drivers save money on fuel and boost competition among forecourts.

Turnbull continued, saying: "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."

Data from the Government suggests that, when introduced, the Fuel Finder tool could help motorists save between one and six pence per litre.

The tool will also be available through map apps in cars, allowing drivers to plan their route around where fuel will be cheapest. It is expected to be rolled out before the end of the year.