The competition watchdog has cleared the grocers having failed to find any widespread evidence of misleading loyalty promotions in the industry.
The Competition and Markets Authority (CMA) has published its cost-of-living report, which cleared supermarkets of ever using misleading loyalty promotions and recognised that “effective competition” between retailers was keeping prices as low as possible for customers.
However, the CMA found prices for motorists at the petrol pump were still too high and there was a lack of competition among fuel retailers, which was “failing consumers”.
Retailers’ fuel margins, which are the difference between what they pay for fuel versus drivers, are “still significantly above historic levels”, the report concluded, with margins at supermarkets around double where they were in 2019.
The CMA said this means motorists paid £1.6bn more for petrol and diesel in 2023 compared with 2019 – a £700m jump from the £900m in extra charges announced in 2022.
CMA chief executive Sarah Cardell said these findings were “concerning” and warned: “High road fuel prices put pressure on households and businesses.”
British Retail Consortium chief executive Helen Dickinson said: “We welcome the CMA update, which once again shows that supermarkets are doing their best to provide great value groceries for their customers. With food inflation now returned to normal levels, fierce competition between retailers is ensuring customers are the big winners from the UK’s supermarket sector.
“The fuel market covers both supermarkets and non-supermarket fuel retailers. Supermarkets remain focused on delivering the best overall value for their customers across all products that they sell, including food and petrol. Retailers will continue to work closely with the CMA and provide the necessary data to allow consumers to find the best prices for petrol and diesel.”
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