Dan Turnbull, Senior Director of Markets at the Competition and Markets Authority (CMA), said
Our new report shows that drivers across the UK have been paying more at the pump in recent months. While recent price rises are partly explained by an increase in the price of oil, what’s deeply concerning is that fuel margins – a key indicator of retailer profit – remain far above historic levels.
The Fuel Finder scheme we recommended to government will help combat this trend, pushing retailers to be more competitive as drivers are empowered with real-time pricing data – making shopping around easier than ever. Government aims to launch the scheme by the end of the year.
Fuel prices
From the end of May to the end of August 2025, fuel prices across the UK increased. The average cost of petrol rose to 133.9 pence per litre (ppl) and the average cost of diesel rose to 141.9ppl, representing increases of 1.9ppl and 3.5ppl respectively.
These changes reflect, in part, changing oil prices and refining spreads, both of which are driven by global factors.
Fuel margins
A retailer’s fuel margin is the difference between what it pays for fuel and the price it sells fuel at.
The CMA’s latest monitoring report shows that, from April to June 2025, margins increased for supermarket retailers compared to the previous three-month period (ranging from 8–9.1% Apr to June). Other retailers’ margins also increased for the same period compared to previous months (ranging from 9.9–10.6% Apr to June).
The key takeaway is that fuel margins remain far above historic levels. For example, supermarket fuel margins stood at 4% in 2017, but reached over double that figure – an average of 8.4% – for the first half of 2025. Likewise, non-supermarket fuel margins were 6.4% in 2017, but the first half of this year averaged 9.8%.
This monitoring update does not consider developments in operating costs. The CMA will undertake a review of fuel retailer operating costs in its first annual road fuel monitoring report, which is set to be issued at the end of the year. This will assess whether changes in costs are impacting fuel margins for large retailers.
Retail spreads
The CMA’s report also considers retail spread, which is the average price drivers pay at the pump compared to the benchmark price at which retailers buy the fuel.
From June to August 2025, retail spreads for petrol averaged 13.3ppl – which is 1.9ppl lower than the March-May 2025 period, but still more than double the average of 6.5ppl seen in 2015-2019. Diesel spreads saw a decrease of 4.1ppl compared to the March-May period, averaging at 13.3ppl. Again, this is far above the average of 8.6ppl recorded in 2015-2019.
While spread analysis can provide a quick overview of sector trends, it is a less reliable indicator of how competitive a market is than individual retailers’ fuel margins. Retail spreads increase and decrease in response to changes in wholesale prices, but should return to a normal range over time provided the market is working well.
Road fuel market study
At the conclusion of its road fuel market study in July 2023, the CMA recommended a new monitoring function and fuel finder scheme to government.
The CMA now has a statutory monitoring function, which ensures ongoing scrutiny of fuel prices to encourage competition between retailers and help keep prices down for drivers. In this role, the CMA uses its information gathering powers, granted by the DMCCA, to secure data from retailers and produce regular reports.
Government aims to launch the Fuel Finder scheme by the end of the year, which will enable drivers to compare real-time fuel prices in navigation apps, in-car devices and comparison sites.
Further details about the CMA’s road fuel monitoring function, including previous reports and guidance, can be found on the collection page.
Notes to editors
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The CMA issued section 311 Information Notices to the following retailers Arthur Foodstores Limited, Asda Express Limited, and Asda Stores Limited (Asda); BP Oil UK Limited; EG On The Move (“EGOTM” ); Esso Petroleum Company Limited; Moto Hospitality Limited; Motor Fuel Group; Rontec Roadside Retail Limited; J Sainsbury PLC; Shell PLC; Tesco PLC; and Welcome Break Group Limited.
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All enquiries from journalists should be directed to the CMA press office by email on [email protected] or by phone on 020 3738 6460.
