Drivers could receive live updates on the cheapest fuel prices, as the Government launches a consultation hoping to ‘bring transparency’ back to forecourts.
The new proposals mean petrol stations would legally be required to share information on their fuel prices within 30 minutes of any changes. Drivers could then check the best prices through various ways, including mobile phone apps, journey planning tools, online mapping platforms, price comparison sites and in-car devices.
The idea is for drivers to have the opportunity to shop around and make the most of the cheapest fuel prices on the market.
A comparable scheme took place in Queensland, Australia and drivers made annual savings of A$93 (£48), according to the UK Government. A similar price-comparison function also exists in the ‘myRAC Fuel Finder’ app, which boasts savings of up to £143 per year for users.
Supermarkets sign up to voluntary scheme ahead of price comparison proposals
The ‘Pumpwatch’ consultation follows the appointment of the Competition and Markets Authority (CMA) in November 2023 as the body in charge of keeping a close eye on the fuel market, while preventing retailers from overcharging drivers.
A report from the CMA last year found some fuel providers charged customers 6p more per litre for fuel than needed, despite making significant savings on oil. This hit UK drivers by a total of £900m in 2022.
Before discussions with customers and retailers over the new proposals take place, twelve fuel providers (including four supermarkets) signed up to a voluntary CMA scheme to begin sharing their daily fuel prices.
Meanwhile, despite fuel costs falling by 6p per litre in December, many supermarkets still overcharged motorists and the RAC urged them to take ‘fairer, smaller, margins’.
Paving the way for fairer fuel prices
After the new proposals from the Government, RAC fuel spokesperson, Simon Williams said: “This is a really important day as it should pave the way for fairer fuel pricing for everyone who drives.”
“Sadly, there have been far too many occasions where drivers have lost out at the pumps when wholesale prices have fallen significantly and those reductions haven’t been passed on quickly enough or fully enough by retailers.
“We badly need to see competition in the wider market match that of Northern Ireland where fuel prices are consistently 5p cheaper.”
Actions of profiteering fuel retailers ‘simply unforgivable’
Edmund King OBE, AA president, added: “The AA commends the Government for addressing the issue of unfair pump prices that we have been raising for some time. The brazen price disparity of sometimes 10p a litre or more between neighbouring towns had to end.
“Pumping up profits by hanging on to the savings from lower fuel costs while consumers, businesses and inflation were denied the relief was quite simply unforgivable.”
For the cheapest supermarkets in the UK, read the current top ten here.
