19 January 2024 , 14:13
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Tesco, Sainsbury's, Asda, Morrisons, Texaco, BP, Shell and more face new rules for petrol and diesel which aim to help motorists save money.
Twelve major retailers including the "Big Four" supermarkets Tesco, Sainsbury's, Morrisons and Asda have signed up for the interim voluntary scheme launched and run by the Competition and Markets Authority (CMA).
Under the new "Pumpwatch" price comparison scheme, petrol stations must hand over their petrol and diesel pump costs to tech firms establishing the scheme. This data will then be made available to drivers through an app so they can see the cheapest fuel prices in their area. According to the Government, this scheme could help drivers save up to 3p per litre of fuel.
A consultation for the official Pumpwatch scheme was published this week and under the proposals, forecourts across the country will be legally required to share live information on their pump prices within 30 minutes of any price change.
Last year, a report by the CMA revealed some retailers had failed to pass on savings in oil prices - charging drivers 6p more per litre for fuel, which amounted to £900million in extra costs in 2022 alone.
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At the end of 2023, the government appointed the CMA as the body responsible for monitoring the road fuel market, to increase transparency and competition in fuel pricing. The watchdog will also shine a light on any attempt from retailers to overcharge drivers, advising the Government on any further action required to make competition work well.
Minister for Energy Affordability and Skills Amanda Solloway said: "We will always act to help keep costs down and ensure hardworking people are getting a fair deal. Our plans are laying the foundations for new fuel finder tools, making it easy for drivers to find the cheapest deals. I’m pleased that following Government action, many retailers are already taking steps to help bring back competitive prices to the pumps."
Campaigner Howard Cox, the founder of FairFuelUK, said: "A PumpWatch consumer pricing watchdog will roll out with teeth to protect the UK's millions of hard-pressed drivers from perennial profiteering by the fuel supply chain at the pumps."
"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."
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