“UKPIA notes the findings of the Competition and Markets Authority (CMA) review into the road fuel market. The initial review was undertaken at speed and CMA had already indicated a full investigation might follow in its initial response to the Secretary of State, so we will continue to work constructively with the CMA and Government to fully understand the issues which have been identified.
“At a time when the cost of living is rising, UKPIA understands that recent price increases at the pumps will be a concern for motorists, families and businesses across the UK.
“As the findings of the review show, the UK typically benefits from a competitive domestic supply chain and prices tend to be most affected by changes in crude oil prices and other supply and demand factors, which have been particularly volatile in 2022.
“Tax is also a significant cost, which account for a large proportion of the pump price.[1] We would note that when fuel duty and tax is excluded, UK petrol and diesel prices have been consistently among the lowest in Western Europe.[2]”
Further information
- UKPIA has worked constructively with the Competition and Markets Authority on its review into the fuel market.
- [1] Fuel Duty and VAT represented on average 48.7% (petrol) / 46.21% (diesel) of the price of a litre of fuel at the pump in May 2022 (BEIS Quarterly Energy Pricing Statistical Release)
- [2] International road fuel prices, April 2022, BEIS