Drivers paying extra for gas as a consequence of weakening competitors between retailers, regulator says

Drivers have been paying extra for gas since 2019 as a consequence of weakening competitors between retailers, a regulator has mentioned.

They mentioned that elevated grocery store gas margins led to drivers paying an additional 6p per litre.

Asda has additionally been fined £60,000 for a failure to supply info when required, the regulator added.

It comes within the Competition and Markets Authority’s (CMA) ultimate report in its year-long investigation into the gas market.

As a part of the investigation, the watchdog examined whether or not there was “any failure in competition” which was leaving customers paying larger gas costs than they need to be.

It had beforehand mentioned grocery store gas costs had been roughly 5p dearer per litre in 2022 than pre-pandemic ranges and that elements past the invasion of Ukraine have impacted the value clients are paying on the pumps and weak competitors has helped drive will increase.

Supermarkets specifically got here in for criticism.

“Higher pump prices cannot be attributed solely to factors outside the control of the retailers,” the CMA mentioned.

On Monday morning, the Petrol Retailers Association (PRA) instructed Sky News that impartial forecourt operators have struggled to be aggressive in opposition to supermarkets.

In March of this yr, the CMA recognized 13 areas of concern as a part of Asda‘s plan to purchase Co-op petrol stations and requested the grocery store purchaser take remedial motion.

An analogous investigation into competitors and meals costs is being accomplished by the CMA.

Chancellor Jeremy Hunt final week met with regulators, together with the CMA, in an effort to push suppliers to scale back costs.