CMA Boosts Retailers as Fuel Prices Drop Sharply

Gas Giants Get A Wake‑Up Call: Pump Prices Drop Like Butter

In a move that felt more like a slap on the back than a subtle nudge, the Competition and Markets Authority (CMA) put retailers on notice about their oil pricing habits—and the pumps are finally showing. After the CMA finally let the gas stations know that customers were paying more than they should, fuel prices have taken a big hit.

Why the Prices Fell

Retailers were keeping most of the wholesale cost. The CMA warned that stores were not passing those costs onto motorists. Imagine buying a coffee that’s already too expensive—now that same model is being applied to petrol.
The report spurred a price‑hunting frenzy, causing the average price per litre of petrol to slide.

How Much Did It Drop?

From 8 Oct, the AA reported a 3.5 pence drop per litre over a month.
Shortly after the CMA’s shout on 8 Nov, another 3.75 pence fell, so they’re basically handing money back to the pocket‑hunters.
In September and October, the gap between the prices at the forecourt and the wholesale cost was significantly higher than the long‑term average.

What This Means for Motorists

With the cost no longer faking its value as golden, drivers are already feeling the relief. That means more cash in hand for coffee, roast dinners, or that long‑awaited movie ticket.

Back to Business – and a Bit More Transparency

The CMA’s report tells retailers: if you overcharge, people will see it and the market will correct itself. A slap, a lesson, a cheaper pump— in a short span the fuel price moral has been put back on track.

AA pump price spokesman Luke Bosdet said, “It’s amazing what happens when the competition watchdog gives the fuel trade a good prod, pump prices fall at twice the speed and £2 comes off the cost of a tank of petrol within a fortnight.”
Bosdet added, “We will have to see how MPs giving the CMA a stronger role in scrutinising the fuel trade turns out in practice.
“However, evidence this month is extremely positive.
“Drivers just need the voluntary fuel price reporting scheme to become a statutory one, particularly along motorways and major routes.”
RAC fuel spokesman Simon Williams said, “The recent fall in fuel prices is definitely no cause for celebration as drivers are still losing out massively at the pumps because retailers refuse to cut their prices to reflect far lower wholesale costs.
“Average retailer margin on petrol is currently around 17p a litre – 10p more than the long-term margin.”