Tesco, Asda, Morrisons and Sainsbury’s told to change rules ahead of fuel duty rise
EXCLUSIVE: Petrol stations may have to introduce new policies to combat rising costs if Labour increases fuel duty costs within weeks.
New petrol station rules at Tesco, Asda, Sainsbury’s and Morrisons will be urgently needed if Labour decides to increase fuel duty fees, according to an expert.
The Government is expected to increase fuel duty charges for petrol and diesel owners by at least 5p per litre in the Autumn Budget.
This would be the first fuel duty increase in over a decade after 13 years of successive freezes or cuts.
Iain Reid, head of Editorial at Carwow predicts Chancellor Rachel Reeves “probably will” increase costs for motorists.
However, he claims that in return officials would need to clamp down on retailers profiteering at fuel pumps if further duty rises come to fruition.
It comes after analysis from the Competition and Markets Authority (CMA) suggested road users had been overcharged at petrol stations.
He explained: “The challenge is to make sure drivers are being treated fairly. The Competition and Markets Authority said in July that weak competition amongst supermarket fuel retailers meant drivers were paying too much.
“Its answer was to push for a 'real-time fuel-finder scheme' to show drivers where the cheapest fuel was.
“That doesn't go far enough in our view. If the Government increases fuel duty in the Autumn then it should use all the powers it has at its disposal to make sure retailers aren't profiteering from owners of petrol and diesel cars.”
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Campaigners have not ruled out a potential 10p fuel duty rise which would hit petrol and diesel owners in the pocket.
A 5p rise would add around £130 to the bills of the average 50-litre family car owner every year.
This means a 10p rise would see charges increase by over £260 per annum in a blow to cash-strapped road users.
Analysis from the CMA suggested that motorists had paid £1.6billion more for fuel than they should have in the last year alone.
They demanded supermarkets to “offer better prices” to ensure they do not ‘rip consumers off”.
Sarah Cardell, chief executive of the CMA previously said: "When it comes to road fuel, the simple answer is that drivers are still paying too much.”
However, Gordon Balmer, Executive Director of the Petrol Retailers’ Association which represents retailers pushed back at the CMA’s findings.
He added: "PRA members are committed to keeping pump prices as low as possible and operate in a highly competitive environment which is affected by a range of factors, including cost increases for retailers and geopolitical events.
“The CMA's analysis does not take these complexities into account.”
