Petrol from supermarket services more expensive in Furness

The Barrow MP Simon Fell called the price disparity 'a massive problem in Furness' and has written to the Competition and Markets Authority (CMA) about the issue.

Increased supermarket profit margins led to drivers paying an extra 6p per litre for fuel last year, the CMA said.

A CMA inquiry also recommended that the Government introduces legislation to enable a fuel finder open data scheme to be created, which could allow drivers to check pump prices through apps or sat navs.

Energy minister Graham Stuart said motorists should 'not be used as cash cows' by the fuel industry and that he was 'shocked' by the Competition and Markets Authority's findings.

The CMA report alleged that some supermarkets were using local competition rather than the market to base prices or deciding to increase the amount of money they make from fuel.

Mr Fell said: "This is still a massive problem in Furness. A few months back I wrote to the CMA highlighting the massive disparity in local pump prices. Their findings are welcome, and I'll be picking these up with ministers."

These are the prices ranked from cheapest to most expensive on the Furness peninsula, according to the comparison site Petrol Map:

Canal Head Services, Ulverston (Gulf): 139.7 per litre petrol

Newland Service Station, Ulverston (BP): 139.9 per litre petrol

Mountbarrow Service Station, Ulverston (Esso): 140p per litre

Shell, Ulverston: 141.9 per litre

Lakeland Service Station, Barrow (Shell): 144.9p per litre petrol

Asda Automat (Barrow):  145.6p per litre petrol

Morrisons Barrow: 145.7p per litre petrol

Tesco Barrow Extra: 145.9p per litre petrol

South Lakes MP Tim Farron, who secured an urgent question in the House of Commons on the matter, suggested Prime Minister Rishi Sunak and Chancellor Jeremy Hunt should 'summon' fuel company bosses to Downing Street and 'press them to return those unfair profits by lowering their prices now'.

The CMA said average supermarket fuel margins rose by 6p per litre between 2019 and 2022.

That led to an estimated combined additional cost of "around £900 million" for supermarket customers.

The Government supports all the recommendations from the CMA, including creating a new public body to "ensure there is transparency" in fuel pricing, Downing Street has said.

The Prime Minister's spokesman said: "It isn't right that at a time when people are struggling with rising living costs, drivers aren't receiving a fair deal for fuel and instead being overcharged by retailers.

"That's why we will be setting up a new scheme to enable motorists to conveniently find the best fuel prices in real time and easily identify who is charging fair prices and passing on savings and who is not.

"We will change the law to force retailers to provide up-to-date price information, increasing transparency and competition, and in turn driving down prices and easing people's cost of living.

"New powers will also be handed to a public organisation, yet to be decided, to closely monitor the UK road fuel market, scrutinise prices and alert government if further intervention is needed in the market.

"We will consult on this in the autumn and while that takes place the CMA will create a voluntary scheme encouraging fuel retailers to share accurate up-to-date road fuel prices for August and continue to monitor fuel prices using its existing powers."

Mr Stuart said it was 'completely unacceptable' that consumers have been paying more, telling the Commons:  "It is wrong that in a cost-of-living crisis that drivers don't get a fair deal on fuel and end up being overcharged. "Motorists should not be used as cash cows by the fuel industry. The Government will not stand for it and I know this House won't stand for it."