Drivers nonetheless paying over the chances, says watchdog

Drivers are paying extra for gas than they need to as a result of retailers’ revenue margins stay “stubbornly excessive”, the competitors watchdog has stated.

The Competitors and Markets Authority (CMA) stated sellers’ margins – the distinction between what a retailer pays for its gas and what it sells at – remained increased than historic ranges, though gas costs have fallen since July.

It stated supermarkets’ margins had risen to eight.1% in August from 7% in April.

The CMA added the “sustained” enhance was regarding and there was not sufficient competitors within the gas market, which continued to drive costs up.

Non-supermarket gas margins rose had risen to 10.2% in August from 7.8% in April, the watchdog stated.

“Whereas gas costs have fallen since July, drivers are paying extra for gas than they need to be as they proceed to be squeezed by stubbornly excessive gas margins,” stated Dan Turnbull, senior director of markets on the CMA.

“We due to this fact stay involved about weak competitors within the sector and the impression on pump costs,” he added, particularly whereas prices of dwelling stay excessive.

“The extra folks save on gas, the extra they should spend in different areas”, he stated.