London accuses fuel distributors of taking the British for “cash cows” by inflating their margins despite the economic crisis, and will force companies in the sector to publish their prices in real time to encourage competition. Britain’s competition watchdog, the CMA, released a report on the sector on Monday showing fuel distributors inflated their margins between 2019 and 2022, costing £900m (more than £1bn). sterling) only in 2022 to British motorists.
The government, in another press release, adds that it will therefore “amend the law to force retailers to provide updated information on their prices, for greater transparency and more competition,” while fuels have been one of Very high inflation engines in the UK. Many Britons are being hit by a severe life crisis, with May inflation persisting at 8.7% (y/y), after having been above 10% for months, driven in particular by energy prices following the war in Ukraine.
Weakened competition in the fuel market
The CMA “has seen a worrying weakening of competition in the fuel market and a general increase in retail margins, particularly for diesel,” according to the government statement, which it says was inspired by price transparency measures in Germany and Australia.
Pump prices soared from record to record in the UK last summer, approaching £2 (2.3 euros) per liter of diesel a year ago, before falling. Prices are currently around 1.45 pounds (1.7 euros) per liter for both diesel and unleaded, according to official figures. Under pressure to cut prices, Britain’s major supermarket chains, several of which are also fuel retailers, assured a parliamentary committee last week that they were doing everything they could to help consumers.
Source: BFM TV
