Today's monitoring report sets out the Competition and Market
Authority's (CMA) observations on developments in the UK's road
fuel retail market since the previous update in March 2025.
Dan Turnbull, Senior Director of Markets at the CMA, said:
While there is uncertainty over how global events will impact the
price of oil, our report shows fuel margins remain high compared
to historic levels despite lower prices at the pump in recent
months.
The government committed to launching a ‘fuel finder' scheme
following our recommendation to help drivers compare real time
prices and boost competition. Once launched, it will make it
easier than ever to shop around and find the best deals.
Fuel prices
Fuel prices across the UK decreased for both petrol and diesel
from end of February 2025 to end of May 2025. These movements
reflect in part changing crude oil prices and refining spreads,
both of which are driven by global factors.
The average petrol and diesel prices at the end of May 2025 were
132.0 and 138.4 pence per litre (ppl) respectively. This
represents a decrease of 7.6 ppl and 8.4 ppl in petrol and diesel
prices compared to the end of February 2025.
Fuel margins
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 margins
were similar to the high levels seen during its road fuel market study – a
review of the market to understand the factors influencing fuel
prices undertaken in 2023 – which suggests overall competition in
the UK's road fuel retail market remains weak.
Supermarket fuel margins fell from 8.9% in December 2024 to 7.9%
in February 2025, before rising to 8.3% in March 2025.
Non-supermarket fuel margins fell from 9.9% in December 2024 to
8.9% in January 2025, before rising to 10.4% in March 2025.
This report does not consider developments in operating costs
since the road fuel market study. The CMA will undertake a review
of fuel retailer operating costs in its first annual road fuel
monitoring report later this year to assess whether operating
cost changes are impacting fuel margins for large
retailers.
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 – across the UK from March 2025 to May
2025.
Petrol retail spreads averaged 15.4 ppl, which was 1.5 ppl higher
than the previous 4 months period – and still more than double
the average of 6.5 ppl over 2015-19. Diesel retail spreads
averaged 18.8 ppl, which was 4.6 ppl higher than the previous 4
months period and more than double the average of 8.6 ppl in 2015
- 2019.
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.
Road fuel market study
At the end of its road fuel market study, the CMA recommended a new
monitoring function and fuel finder scheme to
government.
The CMA has taken on the new statutory monitoring function, which
will provide ongoing scrutiny of prices to encourage effective
competition between retailers and help keep prices low for
drivers. This update is based on data provided to the CMA by fuel
retailers using its new information gathering powers granted
under the Digital Markets, Competition and Consumers Act.
The ‘fuel finder' scheme will allow drivers to compare real-time
fuel prices, via navigation apps, in-car devices and comparison
websites. The government's aim is to launch the scheme by the end
of this year, subject to legislation and parliamentary
time.
Further details about the CMA's road fuel monitoring function,
including previous reports and guidance, can be found on the
collection page.
Notes to editors
-
The CMA issued section 311 Information Notices to the
following retailers: Applegreen PLC; Arthur Foodstores
Limited, Asda Express Limited, and Asda Stores Limited
(Asda); BP Oil UK Limited; Esso Petroleum Company Limited;
Moto Hospitality Limited; Motor Fuel Group; Rontec Roadside
Retail Limited; J Sainsbury PLC; Shell PLC; Tesco PLC; and
Welcome Break Group Limited.
-
Motor Fuel Group announced the completed acquisition of
Morrisons PFSs in the UK on 30 April 2024.
