Drivers Can Compare Fuel Prices at Different Petrol Stations – How Does It Work?
Drivers across the UK now have the ability to compare fuel prices at various petrol stations thanks to a new government initiative aimed at promoting cost-saving measures. Here’s how it works and what you need to know:
Overview of the Fuel Finder Scheme
– Immediate Reporting: Starting Monday, petrol stations are required to report their fuel prices to third-party apps and websites within 30 minutes of any changes.
– Potential Savings: Chancellor Rachel Reeves noted that the Fuel Finder Scheme could save the average household approximately £40 annually.
– Price Variation: Research indicates that motorists may pay up to 20p per litre more for petrol or diesel, depending on their location when filling up.
– Promoting Competition: The Competition and Markets Authority (CMA) asserts that the scheme will empower drivers to find the best deals and enhance competition among fuel retailers.
Background and Recommendations
– Weak Competition: The CMA’s reports highlighted persistent issues of weak competition among petrol stations, with consistently high profit margins for retailers.
– Market Dynamics: The Petrol Retailers Association pointed out that while the industry faces rising wage and tax bills, current pump prices are significantly lower compared to the peaks observed in 2022 and early 2023, following geopolitical tensions impacting oil prices.
– Price Fluctuations: The CMA noted a common trend where retail prices rise like a rocket, but fall like a feather in response to crude oil price changes.
How the Fuel Finder Scheme Functions
– No Government App: While the Fuel Finder Scheme collects and disseminates price data, there is no specific government app directing motorists to the lowest prices. Instead, this open data will be utilized by existing apps and websites that compare fuel prices.
– Mandatory Reporting: Previously voluntary, the new regulation mandates that all petrol and diesel businesses upload their price changes to a government-controlled database.
– Current Comparison Tools: Popular comparison platforms include PetrolPrices, Waze, My RAC, and the AA app, as well as in-car navigation systems and online maps.
– Discrepancy Reporting: Drivers noticing price discrepancies between comparison apps and actual forecourt prices can report these on the Fuel Finder website.
Current Fuel Prices
– Petrol is currently priced at 131.91p per litre, the lowest since July 2021, according to the RAC.
– Diesel is priced at 140.97p per litre, reflecting ongoing adjustments in the market.
Simon Williams, head of policy at the RAC, emphasized that as more of the UK’s 8,300 forecourts begin submitting daily price updates, drivers will find it easier to locate the cheapest options nearby using their preferred apps or navigation systems.
Conclusion
The Fuel Finder Scheme is a significant step towards empowering drivers to compare fuel prices effectively, leading to potential savings and increased competition among fuel retailers. By utilizing available comparison tools, drivers can ensure they are filling up at competitive prices, helping to alleviate some financial pressures in today’s economy.