Fuel retailers will face a Minister today to address concerns over unfair prices at service stations during the Christmas season. Energy Secretary Claire Coutinho will meet with eight firms to ensure that drivers are not being ripped off when filling up their tanks. Supermarket fuel retailers, including Asda, Tesco, Sainsbury's, and Morrisons, will be among the organisations attending the talks. Recent industry figures show that fuel prices have fallen by an average of 2.1p per litre each week, reaching their lowest levels in two years. However, Coutinho will closely monitor pricing activity over the festive period to protect motorists.

Voluntary scheme and legal requirements

Twelve retailers, including four supermarkets, have already signed up for a voluntary scheme where forecourt prices are shared, allowing drivers to save money. Those who have not yet joined will be warned by Coutinho that they will soon be legally required to share live price information. Tech companies will then develop new tools, such as mobile apps and journey planners, to help drivers find the cheapest fuel. The Energy Secretary plans to change the law to enable the Competition and Markets Authority to penalize petrol stations that exploit motorists. However, campaigners are calling for a PumpWatch regulator to allow drivers to compare up-to-date prices online.

Rising costs and profit margins

There have been concerns that motorists are not benefitting from falling wholesale costs and the 5p fuel duty reduction. Earlier this year, a regulator's report revealed that supermarkets were making an extra 5p per litre in profit compared to 2019. New research shows that the average cost of filling up a car with petrol has increased by 17%, or £11, since 2019, reaching £80.80. The North East and London experienced the highest increases at 19% and 18% respectively. Campaigners argue that the government has failed to address petrol profiteering, leaving drivers to bear the brunt of higher prices.

Sources: [link1], [link2]