New data from the Competition and Markets Authority shows UK drivers are being hammered at the pumps.
From the end of May to the end of August 2025, fuel prices across the UK increased. The average cost of petrol rose to 133.9 pence per litre (ppl) and the average cost of diesel rose to 141.9ppl, representing increases of 1.9ppl and 3.5ppl respectively.
These changes reflect, in part, changing oil prices and refining spreads, both of which are driven by global factors. However, the data shows that fuel margins are also increasing.
Historically high margins
A retailer’s fuel margin is the difference between what it pays for fuel and the price it sells fuel at.
The CMA’s latest monitoring report shows that, from April to June 2025, margins increased for supermarket retailers compared to the previous three-month period (ranging from 8–9.1% Apr to June).
Other retailers’ margins also increased for the same period compared to previous months (ranging from 9.9–10.6% Apr to June).
The key takeaway is that fuel margins remain far above historic levels.
For example, supermarket fuel margins stood at 4% in 2017, but reached over double that figure – an average of 8.4% – for the first half of 2025. Likewise, non-supermarket fuel margins were 6.4% in 2017, but the first half of this year averaged 9.8%.
In light of this, the CMA said it will undertake a review of fuel retailer operating costs in its first annual road fuel monitoring report, which is set to be issued at the end of the year. This will assess whether changes in costs are impacting fuel margins for large retailers.
“Our new report shows that drivers across the UK have been paying more at the pump in recent months. While recent price rises are partly explained by an increase in the price of oil, what’s deeply concerning is that fuel margins – a key indicator of retailer profit – remain far above historic levels,” said Dan Turnbull, Senior Director of Markets at the Competition and Markets Authority (CMA).
“The Fuel Finder scheme we recommended to government will help combat this trend, pushing retailers to be more competitive as drivers are empowered with real-time pricing data – making shopping around easier than ever. Government aims to launch the scheme by the end of the year.”
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