Motorists Warn of “Unfair” Fuel Margins, Push for CMA Action
In a sharp warning to the government, a Cabinet Minister has sounded the alarm that drivers are being hit with excessively high margins on petrol sales. The push is now aimed at the Competition and Markets Authority (CMA) to take meaningful and concrete steps against retailers who are evidently squeezing commuters out of their pockets.
RAC’s Bold Demand
The Royal Automobile Club (RAC) has sent a letter to Energy Secretary Claire Coutinho, demanding that the CMA crack down on retailers who add too much to the pump price. Simon Williams, the RAC’s head of policy, writes:
- “Retailers, like all businesses, feel the pinch of inflation, but the margins you see on the pump are simply too high for drivers hustling through a cost‑of‑living squeeze.”
- “Tracking fuel prices against the Consumer Prices Index reveals a clear link between inflation and these inflated margins.”
- “Even with more data than ever, the problem of choking prices remains.”
Williams stresses that the only way forward is for the CMA to wield its price‑monitoring powers to expose and eliminate what he calls “unreasonable” margins, especially when compared to wholesale fuel costs.
Government’s Response
The Department for Energy Security and Net Zero has stood behind the Energy Secretary’s stance. “Retailers who fail to pass savings on to drivers will be held accountable,” the spokesperson said.
- Energy Secretary Claire Coutinho has said the government is arming the CMA with new powers that force retailers to be transparent about their pricing.
- They’re also rolling out the PumpWatch scheme, an initiative that empowers drivers to see whether they’re paying a fair price at the pump.
Petrol Retailers’ Perspective
Gordon Balmer, Executive Director of the Petrol Retailers’ Association (which represents independent fuel sellers), offered a more nuanced view:
“We’re doing everything we can to offer the best deals to motorists, yet we’re also battling soaring fixed costs—everything from theft to increased business rates, energy bills, and even the National Minimum Wage.”
“Our members are not immune to foreign political swings that affect fuel prices, but we’re working closely with the Government on a fuel price transparency scheme to help commuters find the cheapest option in their area.”
Bottom Line
The waves are clear: drivers want fairness, the RAC wants the CMA to step up, and the government is promising new oversight tools. All eyes will be on how the CMA’s new powers play out in practice, and whether the ramping up of transparency will bring those inflated margins to a more reasonable level.
