Government launches scheme to combat overcharging for fuel at supermarkets

The scheme, which was announced by Energy Secretary Grant Shapps earlier this month, is designed to improve transparency and increase competition in the fuel market.

The move follows a report that found drivers paid an extra 6p per litre for fuel at supermarkets last year due to weak competition.

Drivers will be able to compare live prices online to find cheaper fuel, and the government plans to consult on the scheme this autumn ahead of new laws being introduced.

Announcing the scheme, Mr Shapps said the government wanted to "shine a light on rip-off retailers".

He added that retailers will be "held to account for any failure to pass on savings to consumers".

The Competition and Markets Authority (CMA) has also recommended that there is a "fuel monitor" body to oversee the scheme.

The CMA found that average annual supermarket margins on fuel had increased by 6p per litre between 2019 and 2022, equivalent to £900m in extra costs for drivers.

RAC fuel spokesperson Simon Williams said that what is "badly needed" is an official wholesale fuel price monitoring function that has the power to fine or take action against major retailers who don't lower their forecourt prices when wholesale costs drop significantly.

However, the CMA found that competition in the fuel market was "not working as well as it should be".

The government is now urging retailers to share up-to-date fuel prices voluntarily by August as an interim measure before a new law is introduced to force companies to publish live data.

Drivers can save money on petrol and diesel by watching their speed, switching off the air conditioning, and checking their tyre pressure.

In conclusion, the government's scheme aims to improve transparency and increase competition in the fuel market, which will ultimately benefit consumers.

The scheme has been met with support from some driving groups, but others remain sceptical and say that the jury is still out on its effectiveness.