Brits to save on fuel costs as retailers forced to show live rates under new scheme to drive competitive prices
16 January 2024, 00:15 | Updated: 16 January 2024, 00:17
Millions of drivers are set to save on their fuel spending under a new policy that will require forecourts to share live pump prices.
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Under new proposals set out from today, the Pumpwatch scheme will mean fuel forecourts across the UK will be required to show pump prices within 30 minutes of any price change.
It is thought the move could save motorists up to 3p per litre on fuel by allowing them to shop around for cheaper options.
Some 41.2 million motorists will be able to search for the cheapest fuel while on-the-go using mobile apps, comparison websites, online mapping platforms, journey planning tools, and more.
Forcing retailers to keep pump prices updated will also help lower prices by driving competition in the fuel industry as motorists actively search for the best deals.
Affordability minister Amanda Solloway told LBC: “The amount that’s going to be saved is dependent on how much the prices differ on the pumps.
“The whole premise of this, is to enable all consumers who are buying fuel, to get the cheapest fuel around.
“It will hopefully drive competition, which as we know means we get a really buoyant market, and of course that is better for the motorist as well.”
A similar scheme rolled out in Queensland, Australia saw drivers save an average of $93 (£48) per year.
The proposals come after the government found some fuel retailers had been overcharging customers.
A study from the consumer watchdog, Competition and Markets Authority (CMA), last year recommended the government implement an “open-data fuel-finder scheme” after it found that the average annual supermarket fuel margins had increased significantly from 2019 to 2022.
Brits were found to have paid an extra 6p per litre due to weakened competition.
Chancellor Jeremy Hunt said the government would take "swift steps" to reduce fuel prices for the consumer.
Asked if government action on fuel prices had resulted in a drop in prices so far, Ms Solloway said: “We have definitely seen them coming down. I’ve definitely noticed they’re coming down, and this is a result of all the interventions that we’ve been doing.”
