Consultation launches on fuel price transparency scheme for motorists

A public consultation has launched on plans to give motorists access to real-time price comparison data when purchasing fuel, and require retailers to share price changes.

Consumers, retailers, and other organisations are being invited to share their views on the government’s planned Pumpwatch scheme, that will require petrol stations to share real-time price data which can be seen and compared by drivers via navigation apps and other platforms. A similar scheme has already been implemented in the Australian state of Queensland, which is understood to save drivers an average of £48 per year – in the UK, it is estimated the scheme could help drivers save 3p per litre at the pump.

The consultation comes following government action to ensure fuel retailers were passing on recent falls in wholesale prices to motorists, with prices at the pump falling around 2p per litre each week in the six weeks leading up to Christmas 2023.

Energy Security Secretary Claire Coutinho said:

“Our work on competition and transparency is working. Drivers are now paying the lowest average price at the pump for 2 years.

“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.”

Twelve of the biggest retailers, including all 4 fuel-selling supermarkets, have already signed up to an interim voluntary scheme run by the Competition and Markets Authority (CMA) to share their daily prices – with some news outlets and websites using this data to offer price comparisons.

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 £900 million in extra costs in 2022 alone. At the end of 2023, the CMA were appointed to monitor the road fuel market.

Bodies representing motorists have welcomed the launch of the consultation on fuel price transparency. RAC fuel spokesman Simon Williams commented:

“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.

“We badly need to see competition in the wider market match that of Northern Ireland where fuel prices are consistently 5p cheaper.“

Edmund King OBE, AA president, said:

“The AA commends the government for addressing the issue of unfair pump prices that we have been raising for some time. The brazen price disparity of sometimes 10p a litre or more between neighbouring towns had to end. Pumping up profits by hanging on to the savings from lower fuel costs while consumers, businesses and inflation were denied the relief was quite simply unforgivable.

“The government’s proposal should stimulate fairer pricing through free market competition and takes advantage of latest information technology. It gives leeway to fuel retailers to price according to their circumstances but, by directing motoring consumers to where they can get their fuel at a better price, keeps competitive pressure on the trade.“