Drivers may have been overcharged for petrol and diesel by supermarkets and major retailers over recent months and years amid the ongoing cost of motoring crisis.
The Competition and Markets Authority (CMA) has flagged its concern over the rising fuel costs for drivers which have been gradually spiking since the start of the year.
It warned that if fuel prices remain at the current high levels it could create a lack of retail competition in the sector which would “not be a good sign” for drivers.
The latest CMA report found from late October to January this year, petrol prices decreased by approximately 14p per litre from 153.97p to 139.39p. Between January and February of this year, fuel prices rose by 5p per litre to 144.73p.
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Drivers continue to be affected by rising pump prices
PAThe price of diesel also fell 14p from 161.76p to 147.93p between October and late January, but has since risen by over 6p to 154.53p between January and late February.
The CMA estimated that the price hikes were driven, in part, by global factors such as changing crude oil prices.
Dan Turnbull, senior director of markets at the CMA, said: “Drivers are feeling the pinch as fuel prices have been edging up since January.
“We’re particularly concerned by high margins which indicate weakened competition and are not a good sign for drivers.
“Today’s report reinforces the need for Pumpwatch and statutory powers to be in place as soon as possible, to ensure competition is effective in this market and to get a better deal for UK drivers.”
Due to the increased fuel prices, the regulator warned that this has weakened the road fuel retail market.
This emphasises the importance of the Government pressing ahead with its plans to implement both recommendations from the CMA, the regulator explained, for a statutory monitoring function and statutory fuel-finder scheme, which will help drive greater competition in the market.
Simon Williams, head of policy at the RAC, added: “We have long flagged the problem of some retailers inflating their margins on fuel, which has been to the severe detriment of drivers who are already having to cope with wider spiralling motoring-related costs.
“It’s extremely encouraging to see the CMA keeping a close eye on this as it should make retailers think twice about upping their margins.
“We have recently provided our recommendations on what the fuel price monitoring function should track to best benefit drivers every time they fill up.
“We now need to ensure that this once-in-a-generation opportunity of guaranteeing fairer fuel prices isn’t missed.”
Due to the price hikes, drivers have been forced to make drastic decisions to save costs which includes skipping car services, considering selling their cars or avoiding driving altogether.
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Due to the price hikes, drivers have been forced to make drastic decisions to save costs
GETTYSpeaking to GB News earlier today, expert Amanda Stretton explained how drivers continue to be affected by pump prices and the impact it is having on their finances.
Stretton said: “Costs are rising, whether those be direct costs to them through things like insurance or petrol prices, which are still very, very high, or indirect costs, road tax is going up, road quality is going down, parking is impossible."