LONDON, Dec. 22 -- The government of the United Kingdom issued the following news:
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New analysisshowsfuel retaileroperating costsdo notexplainwhyfuel marginsremainatpersistentlyhigh levels
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Fuel finderset to launch next yearto help drivers get the cheapest pricesandboostcompetition in the sector
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CMA publishes enforcement guidance setting out what happens if businessesdon'tcomply withthe newfuel finderregulations
The Competition and Markets Authority (CMA) has warned that fuel margins remain high, despite falling pump prices in the past year. In the first annual road fuel monitoring report under its new powers, the CMA found that operating costs have not impacted fuel retailers' profitability and do not explain why fuel margins remain high compared to historic levels.
This work aligns with the CMA's mission to promote competition and protect consumers with a clear end goal in mind: to drive economic growth and improve household prosperity. It builds on the CMA's road fuel market study which made recommendations to help drivers get more competitive fuel prices. The report captures developments in the road fuel market up to October 2025.
Dan Turnbull, Senior Director of Markets at the CMA, said:
Fuelmarginsremainatpersistentlyhighlevels-and our new analysis shows operating costsdo notexplainthis.Thisindicatescompetition in the sector isweak-if itwasworking well,drivers couldseelower pricesat the pump.
We know fuel costs area big issue for drivers,especially at this time of year withmillionsmaking journeys across the country.This is why thefuel finderschemeis crucial- it willputpower back in the hands of motoristsandsave households money.
Fuel prices
Fuel prices across the UK decreased for both petrol and diesel between November 2024 and October 2025. This trend can be explained by changes to crude oil prices, the exchange rate and refining spread.
The average price of petrol was 135 pence per litre (ppl) between November 2024 and October 2025, 8 ppl lower than the same period in the previous year. The average price of diesel was 142 ppl between November 2024 and October 2025, 8 ppl lower than the same period in the previous year.
Fuel margins
The report sets out average fuel margins for supermarket and non-supermarket fuel retailers across the UK using data up to September 2025. A retailer's fuel margin is the difference between what it pays for fuel and what it sells it at. The CMA found that fuel marginsremainabove historic levels,indicatingthat competition in the road fuel retail marketremainsweak.
Average fuel margins for supermarket fuel retailers on a ppl basis have trended downwards from a high of 10.9 ppl in 2022 to 9.6 ppl for the 2025 year to date (January to September 2025). However, average fuel margins for non-supermarket fuel retailers on a ppl basis for the 2025 year to date are broadly increasing, with fuel margins at 11.1 ppl compared to a margin of 10.8 ppl in the previous year.
Operating costs
The report finds that operating profit margins for large fuel retailers are increasing. Declining or flat operating profit margins would be expected if operating cost increases wereimpactingthe profitability of retailers' road fuel businesses.
These findings challenge claims made by some fuel retailers that high fuel margins could be explained byoperatingcosts. This analysis uses data collected for the period between 2020 and June 2025.
Retail spreads
The CMA also looked at the retail spread - the average price that drivers pay at the pump compared to the benchmarked price that retailers buy fuel at - between November 2024 and October 2025.
While spread analysis can give a quick overview of trends in the sector, it is a less reliable indicator of competitive intensity than individual retailers' fuel margins. Retail spreads increase and decrease in response to the volatility of wholesale prices but should return to a normal range over time if the market is working well.
The petrol and diesel retail spreads averaged 13.9 ppl and 14.6 ppl respectively during this time. Although this is lower than the average over the previous 12-month period, petrol and diesel retail spreadsremainsignificantly above the 2015 to 2019 averages, which were 6.5 ppl for petrol and 8.6 ppl for diesel.
Fuel finder
The 'fuel finder' scheme will allow drivers to compare real-time fuel prices,such asthroughnavigation appsandpricecomparison websites.This will allowdriversto find the best deals andspurcompetition as fuel retailers compete for customers.
This follows the CMA's market study which made recommendations fora new monitoring function and fuel finder scheme.The governmentaccepted these recommendationsandconfirmed that thefuel finderscheme will be up and running fromnext year.These two measures should reinforce one another to help bring about better outcomes fordrivers.
TheCMAhas an enforcement role undernew regulationsto ensure fuel retailers provide data for the fuel finder scheme. Itcantake action to tackleanybreachessuch as issuingfines.The CMA has publishednewguidanceandprovidedan update onitsapproach toenforcementnotingthat up to at least May 2026 its focus will be on supporting businesses tocomply withthe new regime rather than enforcement action.
Notes to editors
* All enquiries from journalists should be directed to the CMA press office by email onpress@cma.gov.ukor by phone on 020 3738 6460.
Disclaimer: Curated by HT Syndication.
