Fuel retailers warned they could face fines over petrol and diesel pricing
15.11.2023 - 15:17
/ manchestereveningnews.co.uk
Fuel retailers could be fined if they don't make their pricing clearer, the government has announced. The Department for Energy Security and Net Zero (DESNZ) plans to give the Competition and Markets Authority (CMA) more power to keep an eye on pump prices and report "any sign of malpractice to the government".
The move is aimed at improving competition in the market. Fuel sellers will have to show how much they're charging customers at the pump compared to their profits, says the DESNZ. If they don't, they could get a fine from the CMA of up to 1% of their worldwide turnover, or an ongoing fine of up to 5% of daily turnover.
A CMA investigation found that some supermarket fuel sellers didn't pass on reductions in wholesale costs last year, charging drivers 6p more per litre for fuel. This added up to £900 million in extra costs in 2022 alone.
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Motoring services company the RAC recently accused major retailers of increasing margins on fuel, and urged them to cut petrol prices by 5p per litre to reflect lower wholesale costs.
Ms Coutinho said: "At a time when many were struggling with increased living costs, we saw shocking behaviour from some fuel retailers who failed to pass on savings at the pump." She added, "Now we are cracking down on any petrol station bosses found to be unfairly hiking up their prices."
"That's why we're giving the CMA new powers to bring fairness back to the forecourts and make sure UK drivers get a competitive fuel price."
Steve Gooding, director of motoring research