Latest news

The Competition and Markets Authority (CMA) has published its latest monitoring report on fuel prices, highlighting increases in both pump prices and retailer margins.

Between May and August 2025, the average price of petrol rose to 133.9 pence per litre (ppl) and diesel climbed to 141.9ppl. That’s up by 1.9ppl and 3.5ppl respectively.

While global oil markets explain part of the increase, the CMA is more concerned about retailers holding onto higher profits at the pump.

Margins far above historic levels

The CMA found that:

• Supermarket fuel margins (the difference between selling price and what the supermarket pays for fuel) averaged 8.4% for the first half of 2025 – more than double the 4% level seen in 2017.  
• Non-supermarket retailers saw an average margin of 9.8% for the same period, compared with 6.4% in 2017.

Dan Turnbull, Senior Director of Markets at the CMA, said: “What’s deeply concerning is that fuel margins – a key indicator of retailer profit – remain far above historic levels.”

In fairness, the monitoring report doesn’t look at how operating costs have changed for retailers. So, CMA will be carrying out a full review of retailers’ operating costs in its first annual road fuel monitoring report, which is due to be published at the end of 2025. This will allow the CMA to assess whether rising costs explain some of the increase, or whether retailers are simply enjoying fatter profits.

Retail spreads remain high

The CMA also looked at “retail spreads” – the average price drivers pay at the pump compared to the benchmark price at which retailers buy the fuel.

• Retail spreads for petrol averaged 13.3ppl between June and August, lower than the spring period but still double the 2015–2019 average of 6.5ppl.  
• Diesel spreads also averaged 13.3ppl, well above the long-term average of 8.6ppl.

Fuel Finder scheme coming

Following a recommendation made by the CMA in its 2023 road fuel market study, the government is planning to launch its new Fuel Finder scheme by the end of the year. This will allow drivers to compare real-time fuel prices via navigation apps, in-car devices and comparison websites.

Increased transparency in pricing may push retailers to be more competitive in their pricing and help bring margins back down.

What’s next

The next major CMA report is due at the end of 2025 and will provide a deeper look at retailers’ operating costs. In the meantime, businesses and drivers alike will be watching closely to see whether the Fuel Finder scheme makes a dent in the high margins and helps bring more competition back to the pump.

To review the report in full, see: https://www.gov.uk/government/publications/road-fuel-quarterly-update-report-september-2025