Petrol and diesel drivers continue to be hammered at the pumps, as fresh research shows that major retailers are failing to pass on savings to motorists.
The latest report from the Competition and Markets Authority (CMA) has found that drivers are not seeing the discounted fuel prices that they should, despite costs falling.
Fuel prices across the UK have fallen between November 2024 and October 2025, with the CMA pointing to changes in global crude oil prices and the exchange rate.
Over the last year, drivers were paying an average of 135p per litre for petrol and 142p for diesel. Both prices were around eight pence per litre cheaper than the previous 12 months.
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However, fuel margins for retailers, which are the difference between what it pays for fuel and what it is sold at, remain above historic levels, showing a lack of competition across the market.
The CMA's first annual road fuel monitoring report found that operating profit margins for the largest retailers are increasing.
The regulator said the findings challenge claims made by some major retailers that high fuel margins were seen as a result of operating costs.
Dan Turnbull, senior director of markets at the CMA, said: "Fuel margins remain at persistently high levels - and our new analysis shows operating costs do not explain this.
Drivers continue to face high costs at the pumps as retailers fail to pass on savings
|GETTY/PA
"This indicates competition in the sector is weak - if it was working well, drivers could see lower prices at the pump."
He acknowledged that fuel prices were still a key indicator of running costs for motorists, especially during the festive period when drivers are more likely to be travelling.
The latest data from RAC Fuel Watch shows that prices "should fall rapidly", with motorists paying an average of 136.17p for petrol and 145.2p for diesel.
Mr Turnbull noted that the Government's Fuel Finder scheme, which the CMA has been instrumental in setting up, will be crucial for motorists.
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The Fuel Finder scheme could help cut prices by between one and six pence per litre | PAFuel Finder will show drivers the average petrol and diesel costs in their local area to help them find the cheapest fuel and promote competition among retailers to pass on further savings to customers.
"It will put power back in the hands of motorists and save households money," Mr Turnbull stated.
A Government spokesperson confirmed to GB News that Fuel Finder remained "on track" as drivers eagerly anticipate a centralised system to help them save money on fuel.
Modelling forecasts suggested that Fuel Finder could help drivers save between one and six pence per litre when they fill up, at an average of £40 in savings a year.
Chancellor Rachel Reeves confirmed that Fuel Finder would be rolled out in the coming months to "empower drivers to find the cheapest fuel, calling out rip-offs and strengthening competition".
It is likely to be modelled on the Consumer Council Fuel Price Checker, which is already operational in Northern Ireland, helping to slash costs for motorists when they fill up.
Fresh data from the service shows that drivers across the country are saving an average of seven pence per litre for petrol and nine pence on diesel.
Motorists can save even further by travelling to Downpatrick for unleaded, where it costs just 127.9p. Similarly, Cookstown filling stations are charging just 133.5p on average for diesel.