This comes after a Competition and Markets Authority (CMA) investigation found that Britons paid an extra 6p per litre for fuel at supermarkets in 2022 due to weak competition.
Under the new scheme, drivers will be able to compare up-to-date fuel prices online and find the cheapest option.
The government will also set up a new "fuel monitor" oversight body to scrutinize prices and increase transparency.
The CMA has been investigating the UK fuel market due to concerns that falling wholesale prices are not being passed on to consumers.
The average annual supermarket margins on fuel have increased by 6p per litre between 2019 and 2022, costing drivers an extra £900m in extra costs.
The RAC's spokesman said the extra costs for consumers were "nothing short of astounding in a cost-of-living crisis." The Competition and Markets Authority (CMA) is investigating complaints that supermarkets are not passing on falling food prices to consumers.
Food price inflation on items like bread, cereal, and chocolate remains high at 18.3%.
Supermarkets deny profiteering, but admit the industry is competitive.
To save money on petrol and diesel, drive at 45-50mph, switch off the air conditioning, and check your tyre pressure.
LONDON DAILY ARCHIVE
UK Government Takes Action to Stop Supermarkets Overcharging Consumers on Fuel
The UK government is implementing a new scheme to force supermarkets and other fuel retailers to publish live fuel prices to stop them from overcharging consumers.
03 July 2023 · 23:25 UTC
