An investigation has been launched into whether shoppers are being ‘overcharged’ for fuel and groceries.
The Competition and Markets Authority (CMA) is set to look at whether ‘any failure in competition’ is leaving consumers out of pocket.
The CMA said it had not seen evidence pointing to specific competition concerns in the grocery sector ‘at this stage’, but it was ‘important to be sure that weak competition is not adding to the problems’.
Supermarket fuel prices were roughly 5p more expensive per litre in 2022 than pre-pandemic levels, it was found.
The CMA said that factors beyond the invasion of Ukraine have impacted the price customers are paying at the pumps and weak competition has helped drive increases.
Retailers, specifically supermarkets, came in for criticism from the regulator.
‘Higher pump prices cannot be attributed solely to factors outside the control of the retailers,’ the CMA said.
Evidence provided by the supermarkets, as part of the CMA’s road fuel market study, also received criticism.
It said: ‘Whilst the level of engagement with the study has varied across supermarkets, we are not satisfied that they have all been sufficiently forthcoming with the evidence they have provided.’
In a bid to ‘get to the heart of the issues’, the CMA will conduct ‘formal interviews’ with the senior management of supermarkets.
The CMA did add that supermarkets still tend to be the cheapest retail suppliers of fuel but found evidence indicating ‘at least one’ supermarket has ‘significantly increased’ its internal forward-looking fuel margin targets.
Other supermarkets have recognised this and may have changed their pricing behaviour accordingly, the regulator said.
The watchdog has also been investigating price rises in the grocery market and on Monday announced it is stepping up its work to see if there are any competition failures that may contribute to more expensive grocery prices.
So far the body said global factors have been the main driver of grocery price increases and it has not seen evidence of specific competition concerns in the sector.
Grant Shapps, the secretary of state for energy security and net zero, said: ‘We won’t stand for motorists being treated like cash cows and ripped off at the pumps.
‘Fuel prices are falling so there is absolutely no excuse for retailers to not pass those savings on.
‘Supermarket bosses must fully cooperate with the watchdog’s investigation and if they refuse to play ball I won’t hesitate to take action.’
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