Supermarkets Accused of Overcharging at Fuel Pumps
Introduction
In September 2025, the UK’s Competition and Markets Authority (CMA) raised significant concerns regarding the fuel pricing practices of supermarkets and other retailers. The CMA’s findings suggest that these retailers have been maintaining profit margins on fuel that are substantially higher than historical levels, leading to increased costs for consumers.
CMA’s Findings
The CMA’s monitoring report indicates that from April to June 2025, supermarket fuel margins ranged from 8.0% to 9.1%, while non-supermarket retailers’ margins ranged from 9.9% to 10.6%. These figures represent a significant increase from 2017, when supermarket margins stood at 4.0% (The Independent).
The average price of a litre of petrol rose by 1.9p to 133.9p, and diesel increased by 3.5p to 141.9p during the same period (The Independent). While part of this increase is attributed to rising crude oil prices, the CMA emphasizes that the larger issue lies in elevated retailer fuel margins.
Industry Response
Consumer advocacy groups, such as the AA and RAC, have criticized retailers for exploiting consumers during a cost-of-living crisis. The AA’s Luke Bosdet highlighted the “postcode lottery” of pump prices, where neighboring towns show unjustified price differences due to local price-matching practices (The Sun).
In response to these concerns, the government plans to implement a “fuel finder” scheme by the end of 2025. This digital tool will allow UK drivers to compare real-time fuel prices through apps and devices, fostering greater pricing transparency and competition (The Guardian).
Historical Context
The issue of inflated fuel margins is not new. In 2007, a petrol contamination incident in the UK led to widespread vehicle breakdowns, with supermarket petrol being identified as the source. This event highlighted concerns about the quality and pricing of supermarket fuel, leading to increased scrutiny of their practices (Wikipedia).
Case Studies and Consumer Experiences
1. The 2023 CMA Investigation
In 2023, the CMA conducted an investigation into fuel pricing practices and found that supermarkets were maintaining profit margins significantly above historical levels. The report revealed that from April to June 2025, supermarket fuel margins ranged from 8.0% to 9.1%, more than double the 4% margin recorded in 2017. This discrepancy led to consumers paying approximately £900 million more at the pumps in 2022 alone. (The Independent)
2. Asda’s Pricing Practices
Asda, one of the UK’s leading supermarket chains, has been at the center of fuel pricing controversies. In 2024, research by the RAC indicated that Asda’s unleaded petrol was, on average, 2.1p per litre more expensive than its competitors, and diesel was 2.5p per litre more. This shift occurred after the retailer’s private owners ended Asda’s commitment to offering the lowest fuel prices. The CMA found that Asda’s profit margin on fuel had significantly increased since 2019. (The Guardian)
3. Consumer Complaints and Advocacy
Consumers have expressed frustration over the rising fuel prices. The AA’s Luke Bosdet criticized retailers for exploiting consumers during a cost-of-living crisis, pointing to a “postcode lottery” where neighboring towns show unjustified price differences due to local price-matching practices. The RAC echoed these concerns, noting that CMA monitoring has yet to reduce prices, and is looking to the government’s upcoming “fuel finder” scheme for a solution. (The Guardian)
Expert Opinions and Regulatory Actions
1. CMA’s Monitoring Reports
The CMA’s monitoring reports have consistently highlighted concerns over high fuel margins. In March 2024, the CMA noted that prices at the pump had risen since late January, accompanied by above-average margins and spreads. The regulator emphasized the necessity of the upcoming Fuel Finder scheme to enhance pricing transparency. (GOV.UK)
2. Government’s Fuel Finder Scheme
In response to public outcry and regulatory findings, the UK government announced plans to implement a “fuel finder” scheme by the end of 2025. This digital tool will allow UK drivers to compare real-time fuel prices through apps and devices, fostering greater pricing transparency and competition. (The Guardian)
Conclusion
The issue of supermarkets overcharging at fuel pumps has garnered significant attention from regulators, consumer advocacy groups, and the public. While investigations have revealed concerning pricing practices, steps are being taken to address the situation. The implementation of the Fuel Finder scheme is expected to provide consumers with the tools needed to make informed decisions and promote fair competition in the fuel retail market.