Fuel retailers are overcharging drivers at the pumps despite falling wholesale costs, the RAC has warned, as it launched a scathing attack on the industry following the Competition and Markets Authority's latest market report.
The motoring organisation said the gap between wholesale fuel prices and forecourt costs is substantial, particularly for diesel, placing unnecessary strain on households and businesses already battling the cost of living crisis. Retailers are failing to pass on savings and instead inflating their profit margins, the RAC claimed.
The CMA's annual monitoring report identified persistent problems in the fuel market, finding pump prices remain higher than expected in many areas. The watchdog highlighted weak competition in local markets as a key concern, allowing retailers to maintain elevated prices without pressure to cut them.
The RAC has demanded greater transparency from fuel retailers over their pricing strategies, arguing this would help consumers make informed choices and boost competition. The call supports government initiatives including the 'pump watch' scheme, which provides real-time fuel price data to the public.
High fuel prices continue to hit families hard, affecting daily commutes, transport costs for goods, and wider economic stability. For many UK households, fuel represents a significant monthly expense, and perceived unfairness in pricing is eroding market trust.
The RAC is urging retailers to act responsibly by adjusting prices to reflect true wholesale costs, warning that without action, the financial burden on consumers will continue to mount.