Hyndburn and Haslingden's Member of Parliament, Sara Britcliffe, has welcomed proposed reforms to ensure drivers do not continue to be subjected to high prices. This comes following a study by the Competition and Markets Authority (CMA), who found that there is not enough competition in the market, and that supermarkets, who often set the local price of fuel, have not been acting as they should.
The CMA have proposed new fuel finder scheme that would provide drivers access to real-time, station-by-station fuel pricing on their phones or satnavs that will improve customer choice and help revive competition in the retail road fuel market.
Retailers currently only disclose pricing information for individual fuel stations. Drivers find it challenging to compare pricing as a result, which reduces competition. The CMA is also proposing a new 'fuel monitor' to keep check on the market.
Supermarkets are normally the cheapest places to buy fuel, with Asda being the most affordable. In the past, this has anchored prices. According to the CMA, Asda and Morrisons, both decided to target higher margins. Asda’s fuel margin objective for 2023 was more than three times that of 2019, while Morrisons margin target was more than doubled in the same timeframe. Other stores, such as Sainsbury’s and Tesco, did not respond as anticipated in a competitive market, instead raising their pricing to reflect these changes.
Commenting, Sara Britcliffe MP said:
Back in 2022 I wrote to the Secretary of State regarding regional fuel price variation and how this was impacting Hyndburn & Haslingden.
The Competition and Markets Authority then started a study of the market which has now completed, finding that supermarkets, so often the base price setters in this market, have deliberately increased their margins and competition is not working well.
As a result, the CMA is now suggesting further action to ensure drivers are not beholden to this again, by increasing the transparency over up to date fuel pricing and a new ‘fuel monitor’.
This is something I support for Hyndburn & Haslingden. In places like Accrington, a supermarket can easily set the local rate. I believe that the proposed reforms would increase competition and deliver better prices for drivers.
