Supermarkets and independent retailers see the biggest profit increases in years
New figures from the Competition and Markets Authority (CMA), published 26 September 2025, show that motorists are continuing to pay inflated prices at the pump - not just due to global oil costs, but because retailers’ profit margins remain significantly elevated.
What’s going on?
- Between April and June 2025, supermarket fuel margins rose to 8.0%-9.1%, compared with just 4% in 2017.
- For non-supermarket retailers in that same period, the margins were even higher: 9.9%-10.6%.
- The CMA emphasises that although higher crude oil and refining costs are contributing to rising pump prices, the persistent high margins are the “deeply concerning” part.
Source: https://www.gov.uk/government/news/cma-fuel-update-prices-at-the-pump-remain-high
Fuel Retail Margins – CMA Quarterly Report (April–June 2025)
| Retailer Type | Avg Margin 2017 | Avg Margin 2024 | Avg (Apr–Jun) 2025 | Change From 2017 |
|---|---|---|---|---|
| Supermarkets | ~4.0% | 8.0% | 8.4 – 9.1% | ▲ More than doubled |
| Non-Supermarket Retailers | ~4.0% | 9.2% | 9.8 – 10.6% | ▲ More than doubled |
| Retail Spread (ppl) | Petrol ≈ 8.0 / Diesel ≈ 8.5 | Petrol ≈ 12.5 / Diesel ≈ 12.8 | Petrol 13.3 / Diesel 13.3 | ▲ Significantly higher |
Source: Competition and Markets Authority – Road Fuel Quarterly Update, September 2025 (PDF)
The Petrol Retailers Association responds
Since publication of the CMA report - September 2025, Gordon Balmer Executive Director of the Petrol Retailers Association (PRA), commented:
The latest CMA report is incomplete as it continues to benchmark current fuel margins against eight-year-old data. PRA continues to reinforce that operating costs for fuel retailers have increased substantially during this period.
Rising costs of borrowing, increased labour costs due to successive national minimum wage hikes, higher business rates, increased employer National Insurance contributions, soaring energy bills and escalating crime levels all contribute to the financial pressures facing forecourt operators. These are crucial factors when assessing fuel pricing.
Why it matters for you
As a driver using our Fuel Watch / Fuel Finder service, here’s what this means:
- Even when wholesale fuel costs drop, you may not always see equivalent savings at the pump, because retailers may be retaining higher margins.
- Because non-supermarket retailers are showing higher margins, it pays to shop around and use real-time price comparison tools (like our Fuel Prices Lookup) to find the best deal near you.
- The data indicates that competition among fuel retailers isn’t fully working to your advantage - so tools that increase transparency can only help encourage more competitive pricing.
Good news ahead?
The CMA has recommended the introduction of a “Fuel Finder” type scheme: the government plans to roll out real-time price transparency tools by the end of 2025.
Once live, it will be faster and easier to compare prices for petrol and diesel across local forecourts via our tool (or others) - which could bring downward pressure on those inflated margins.
Existing solutions are currently updated daily, so with these new real-time updates, published within 30 minutes, consumers will have immediate access to more up-to-date information.
How to act now
- Before you fill up, check our Fuel Watch / Fuel Finder to compare local prices - the difference of a few pence per litre adds up quickly.
- If the prices in your area seem high relative to nearby forecourts, consider driving an extra mile or two if savings cover the detour.
- Stay aware of margin-wide trends: even if the headline pump price looks stable, the margin component might still be elevated.
- Use this data as leverage: it strengthens your case when asking for better local deals or when commenting to retailers or local authorities.
Keep up-to-date on the latest fuel prices in your area
Stay ahead of the game with our Fuel Prices Lookup service, which tracks the latest prices in your area, shows cheaper alternatives, and make every litre count.