The Competition and Markets Authority (CMA) has recently shared some concerning news for drivers across the UK.
According to their latest update, the rising cost of fuel has hit motorists hard, with the total extra cost due to increased fuel margins reaching over £1.6 billion in 2023 alone.
So, what does this mean? What exactly are fuel margins?
In simple terms, fuel margin is the difference between what retailers pay for their fuel and what they charge customers at the pump. While this difference has usually been stable, the CMA’s report shows that it has grown significantly in recent years, especially since 2019. This is particularly true for the UK’s largest supermarkets, where the margins have roughly doubled since then.
So, what does this mean for drivers? Basically it means that the cost of filling up has become noticeably more expensive. The extra £1.6 billion paid by drivers in 2023 is money that could have been saved or spent on other things. Instead, it has gone straight into the pockets of retailers due to these higher margins.
Unless something changes in the market or new regulations are introduced, drivers may continue to face high prices at the pump.
However, there are a few things drivers can do to lessen the impact.
1) It’s a good idea to shop around for the best fuel prices, as they can vary from place to place.
2) Keep your car in good running order
3) Use eco mode
4) Use a high gear
5) Avoid the air-con and heater
6) Remove heavy storage or clutter
While the future of fuel prices remains uncertain, being aware of these changes and taking steps to manage fuel costs can help drivers navigate these challenging times.
