Due to a lack of competition, supermarket fuel prices increased by 6 pence.

According to a watchdog, drivers spent an additional 6p per litre for petrol at supermarkets last year because poor competition allowed businesses to increase profit margins.

According to the Competition and Markets Authority (CMA), this has resulted in higher charges of "around £900m" for drivers who use supermarkets.

Ministers are supporting the CMA's proposal for a fuel finder service to assist drivers in finding better current prices online.

The cost of fuel reached all-time highs in the wake of Russia's invasion of Ukraine but have since declined dramatically.

The CMA is looking into the UK gasoline industry because there are worries that lower wholesale prices are not being passed on to consumers.

Supermarkets were normally the cheapest location to get fuel, according to the watchdog, but competition was "not working as well as it should."

It was found that between 2019 and 2022, average yearly supermarket fuel margins climbed by 6p per litre. Since 2019, Morrisons' and Asda's planned fuel margins for 2023 have risen and tripled, respectively. Additionally, Sainsbury's and Tesco have followed suit, raising their prices, implying that competition had "weaken." Increased fuel margins across all retailers cost drivers an additional 13p per litre between January 2023 and the end of May 2023.

The government is supporting the CMA's proposal for a "fuel finder" programme that would provide drivers with real-time, station-by-station gasoline prices on their phones or satnavs.

Currently, these companies only disclose price information at fuel stations, making it difficult to compare prices.

The government stated that the legislation would be altered to require gasoline sellers to exchange data. A new "fuel monitor" monitoring committee will also be established to examine pricing.

Saving money on fuel

Keep an eye on your speed: According to the RAC, the most optimal pace to drive at for fuel efficiency is 45-50mph.

Turn off the air conditioning: The air conditioning system in your car requires extra energy, and turning it on can raise your fuel use by up to 10%, according to the AA.

Check your tyre pressure: Underinflated tyres waste fuel. Check your pressures on a regular basis, especially before embarking on a lengthy journey.

(Sources: bbc.co.uk, gov.uk, rac.co.uk, theaa.com)