Retailers, consumers and other organisations are being asked for views on the government’s new Pumpwatch scheme, which would see all fuel stations across the country legally required to share real-time price information with an organisation to be appointed by the government.
Under the new proposals, forecourts across the country will be legally required to share live information on their pump prices within 30 minutes of any change in price, which could save drivers 3p per litre on fuel by helping them find the best deal at the pump.
This freely available data will enable tech companies to develop new ways for the UK’s 41.2 million drivers to search for the cheapest fuel while on mobile apps, online mapping platforms, journey planning tools, price comparison websites, and in-car devices.
The government has acted after some fuel retailers were found to be overcharging customers, and already there are signs that fairer deals are returning to forecourts. Since these interventions, fuel prices have fallen by an average of around 2p per litre every week between 13 November and 25 December, the lowest average price at the pump for 2 years.
Energy Security Secretary Claire Coutinho said: “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 four 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.
At the end of 2023, the government appointed the CMA as the body responsible for monitoring the road fuel market, to increase transparency and competition in fuel pricing. The watchdog will also shine a light on any attempt from retailers to overcharge drivers, advising government on any further action required to make competition work well.
The consultation also covers some elements of the CMA’s new role in monitoring the road fuel market. Industry have been asked for their views on several areas, including the topics the CMA will focus on, the frequency of reporting, and support to help businesses with the CMA’s information requests.
RAC fuel spokesman Simon Williams said: “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, AA President, added: “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.”
The consultaion can be found here.
