London, September 26, 2025 – The Competition and Markets Authority (CMA) has warned that drivers across the UK continue to pay elevated prices at the pump, as fuel retailer margins remain well above historic levels despite recent fluctuations in oil prices.
According to the regulator’s latest road fuel monitoring report, average pump prices rose between May and August 2025 and attributed some of the increase to higher global oil prices and refining spreads, but said a more concerning trend is the persistent rise in retailer profit margins.
The CMA found that supermarket fuel margins – the difference between wholesale purchase price and pump price – averaged 8.4% in the first half of 2025, more than double the 4% margin recorded in 2017. Non-supermarket retailers averaged 9.8%, up from 6.4% eight years ago.
“While global oil costs explain part of the increase, what’s deeply concerning is that fuel margins remain far above historic levels,” said Dan Turnbull, Senior Director of Markets at the CMA. “The government’s upcoming Fuel Finder scheme will help address this by giving drivers real-time price data and encouraging stronger price competition.”
The CMA’s analysis also found that retail spreads – the difference between pump prices and benchmark wholesale rates – remain historically high. From June to August 2025, spreads for both petrol and diesel averaged 13.3 pence per litre, more than double the pre-pandemic averages.
Although spreads have narrowed slightly since spring, the CMA said they remain indicative of limited competitive pressure among fuel retailers. The authority will conduct a review of operating costs in its first annual report later this year to determine whether structural changes are driving the higher margins.
Following its 2023 road fuel market study, the CMA was granted statutory monitoring powers under the Digital Markets, Competition and Consumers Act. The watchdog now collects regular pricing data from major retailers to track market performance and identify potential concerns.
The government is expected to launch the Fuel Finder scheme by the end of 2025. The CMA believes the tool will help restore price transparency and pressure retailers to compete more actively.
Source: https://www.gov.uk/government/news/cma-fuel-update-prices-at-the-pump-remain-high
