Drivers can soon compare the latest fuel prices using comparison sites and location-finding apps, the Government has announced.
Motorists will be able to check fuel prices within 30 minutes of them changing as part of a PumpWatch initiative to be introduced by the end of the year.
As part of the scheme proposed in January, leaders from comparison sites including Confused.com and GoCompare agreed to share fuel price data with drivers to drive down the cost of petrol and diesel.
It’s hoped that an increase in competition will lead to fuel retailers reducing prices to win over as many of the UK’s 41 million motorists as possible.
Companies including PetrolPrices.com, the AA and RAC will meet in the consultation to make prices more transparent for drivers, and it ends on 12 March. The breakthrough follows the appointment of the Competition and Markets Authority (CMA) in November 2023, which was assigned to prevent retailers from overcharging drivers.
Proposals for PumpWatch follow freeze on fuel duty
Supermarkets have consistently faced criticism for their costs. Despite prices falling on fuel across the market, supermarkets’ fuel costs soared, according to RAC data.
In December last year, the motoring service found the average margin on a litre of fuel was 13p across supermarkets. As a result, it asked supermarkets to take “fairer, smaller margins” so drivers aren’t paying over the odds.
Last week, after calls from the AA and RAC, Chancellor Jeremy Hunt announced in his Budget speech that the cost of fuel duty will freeze for another 12 months in a bid to save drivers around £50 per year. The PumpWatch campaign hopes to contribute further to those savings.
Minister for energy affordability and skills Amanda Solloway said: “The Government is already working to bring down fuel prices, and we will all see the difference of the 5p fuel duty cut extension at the pumps.
“We want fuel prices at your fingertips, refreshed within 30 minutes of changing, so everyone can save when filling up their tank – even when visiting an area they don’t know. The Government and tech firms are working together to make sure PumpWatch is a success, so we can put hard-earned pounds back in families’ pockets.”
Plans for fuel price scheme ‘envisaged for more than a decade’
The AA welcomed the price-checking initiative, although it feels the action has taken longer than necessary to be introduced.
Jack Cousens, head of roads at the AA, said: “What the Government and the CMA are achieving with its pump-price transparency scheme is fast on the road to what the AA has called for and envisaged for more than a decade.
“For years, European countries have provided their motorists with the ability to check pump prices wherever they go, and thus spur competition. The UK is now getting there.
“Bringing tech firms into the picture will help that process and lead to innovative use of the price data. An example of innovation is the Fuel Price Checker in Northern Ireland, which allows drivers to see the towns offering the cheapest fuel. However, there is so much more that can be done with the data, and bringing in the digital experts will hopefully unlock that.”
