16 January 2024 , 00:01
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Petrol forecourts will be forced to share their prices with comparison sites and apps to make it easier for drivers to find cheaper fuel under Government plans.
Fuel stations will be legally required to update their pump prices within 30 minutes of any change in price. Drivers will be able to check prices via mobile apps, price comparison websites and sat-navs.
The Department for Energy Security and Net Zero (DESNZ) said data on prices will be freely available for tech companies to develop new price comparison tools. Consumers, retailers, and other organisations are today being asked for their views as part of a consultation for the new Pumpwatch scheme.
The move, which is being consulted on, could save drivers 3p per litre on fuel by helping them find the lowest prices in their area, according to the DESNZ. A similar scheme in Queensland, Australia, saw drivers save an average of 93 Australian dollars (£49) per year on fuel, the department said. Government figures show the average price of a litre of petrol on January 8 was at its lowest level since October 2021, at 139.7p. This has been attributed to a fall in oil prices.
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Twelve major fuel retailers - including all four fuel-selling supermarkets - signed up to an interim voluntary scheme launched by the Competition and Markets Authority (CMA) last year to share daily prices. Last year, the CMA said that in 2022 UK motorists paid around £900 million in additional costs due to supermarkets failing to pass on savings from lower oil prices.
Energy Security Secretary Claire Coutinho said: "Our work on competition and transparency is working. Drivers are now paying the lowest average price at the pump for two years. We are forcing retailers to share live information on their prices within 30 minutes of any change in price, helping drivers to find the best deal at the pump. This will put motorists back in the driving seat and bring much-needed competition back to the forecourts."
RAC fuel spokesman 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."