Motorists forced to pay 6p a liter too much as supermarkets are accused of using customers as 'cash cows'

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Supermarkets have been accused of profiting from 'scam' fuel prices during the cost of living crisis after a damning investigation found drivers had paid almost a billion pounds too much fuel last year.

Rishi Sunak's government has pledged to end the use of motorists as 'cash cows' after the scathing report by the Competition and Markets Authority (CMA) revealed revealed that fuel retailers charged an extra 6p on every liter sold between 2019 and 2022.

This means drivers were charged between £2.70 and £3.90 too much for a tank of fuel. gasoline or diesel every time they filled up their vehicle on a forecourt in recent years.

Keeping prices too high to 'increase margins' meant motorists were paying around 900 million pounds too many at service stations run by Asda, Tesco, Sainsbury's and Morrisons in 2022, the CMA said.

Although the regulator found no evidence of 'cartel behaviour' , the government accused supermarkets of 'using motorists as cash cows' by 'inflating prices' but refusing to pass on the savings.

The AA claimed drivers were at rightly "convinced" for over a decade that prices at the pump "explode" when costs rise, but fall "much slower" when costs fall.

Downing Street is committed to introduce new legislation requiring fuel retailers to make diesel up-to-date and accessible to third parties. This should lead to the creation of price comparison apps and websites, allowing drivers to find the cheapest fuel in their area.

No 10 has also pledged to entrust new powers to a public body to "closely monitor" prices at the pump and "alert" ministers if further intervention is needed, with a plan to launch a consultation on the measures in the autumn.

The RAC said it was 'extremely pleased' the government was taking action, while the AA said the promised changes were 'better late than never' - arguing it was 'blindly obvious' that supermarkets charged too much.

AA spokesman Luke Bosdet said: "Unfortunately it took more than 15 years for a government and competition watchdog to recognize this and do something about it. However, an action that is better late than never is much appreciated by motorists across the UK.