CMA warns that UK fuel prices still too high
UK fuel prices remain too high, according to the latest quarterly report published by the Competitions and Markets Authority (CMA).
It found that fuel prices across the UK decreased for both petrol and diesel from end of February 2025 to end of May 2025.
The average petrol and diesel prices at the end of May 2025 were 132 and 138.4 pence per litre respectively, which represents a decrease of 7.6 ppl and 8.4 ppl in petrol and diesel prices compared to the end of February 2025.
However, fuel margins remain similar to the high levels seen during the CMA’s 2023 review into the market to understand the factors driving up fuel prices undertaken, which it says suggests overall competition in the UK’s road fuel retail market remains weak.
Fuel margins
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.”
RAC head of policy Simon Williams said: “Drivers will be concerned to hear that retailer margins on fuel are still above where they have been historically and that competition remains weak.“Given fuel is a major expense for households, and with eight-in-10 drivers dependent on their cars, it’s disappointing to see they’ve paid over the odds yet again. We have to hope the launch of the government-backed Fuel Finder scheme, due at the end of the year, will stimulate competition and finally lead to fairer pump prices.”
