By ROB HULL, MOTORING EDITOR
Motorists shouldn't ever overpay for petrol and diesel locally again under new rules introduced by the Government to prevent retailers from ripping drivers off at the pumps.
The Department for Energy Security and Net Zero has today (Monday 2 February) announced the Fuel Finder Scheme which legally requires every filling station to share changes to their prices within half an hour of making them.
Drivers will soon be able to access live pricing data via websites and applications on their smartphones or in their vehicle's satellite navigation system to locate the cheapest forecourts around them.
The scheme, which has been years in the waiting, comes in the wake of a major investigation into the fuel retail sector that has consistently found that drivers are being taken for a ride at the pumps.
The Competition and Markets Authority (CMA) has called for the implementation of the statutory scheme since 2023 having found evidence of weakened competition in the fuel retail industry following the pandemic.
Chancellor Rachel Reeves confirmed the Fuel Finder Scheme would be implemented in her Autumn Budget statement, saying it will save the average household £40 a year.
Motoring groups have today celebrated its official launch saying it should be 'the start of the journey to cheaper fuel prices around the UK'.
New rules introduced by the government on Monday 2 February will soon allow motorists to access live fuel pricing information so they can identify the cheapest filling stations around them
From Monday 2 February, all filling station operators and chains must update the Government's central fuel price database with their most up-to-date pricing.
The rules also apply to small and local independent garages as well as supermarkets.
Any increases or reductions they make at the pump are legally required to be updated on the system within half an hour of the changes.
It means the nation's motorists will have access to live open-source data to find the filling stations with the cheapest fuel without having to drive around checking the pricing boards at forecourts.
Where this will have the greatest impact is for drivers on longer journeys.
With motorway service stations typically charging up to 20p more for a litre of petrol and diesel, motorists will be able to see on a map how far they need to travel towards a town and city to fill up for £11 a tank less.
The CMA, which continues to investigate the sector, is responsible for enforcing the scheme.
The watchdog has for the last three years called for price transparency to help drivers who have been vulnerable to retailers deploying 'rocket and feather' pricing tactics.
The authority said it will concentrate on helping businesses comply with the new rules for the initial few weeks before taking action against those retailers found not to be updating their pricing information from May.
When announcing the introduction of the scheme in November, Chancellor Reeves said:: 'Because I know that changes in wholesale prices are not always passed on to motorists, I am bringing in new rules to mandate petrol forecourts to share real-time price rises through a new Fuel Finder.
'This measure will empower drivers to find the cheapest fuel, call out rip-offs and strengthen competition, saving the average household up to £40 a year.'
Motoring groups have celebrated the launch of the Fuel Finder Scheme saying it should be 'the start of the journey to cheaper fuel prices around the UK'
Responding to its implementation on Monday, Simon Williams, head of policy at the RAC, said: 'The Government has set up this scheme with the intention of increasing competition among retailers to give drivers better value at the pumps.
'As a growing number of the country’s 8,300 forecourts submit their prices on a daily basis, drivers will be able to easily find the cheapest forecourts near them using their favoured app or sat-nav.'
Edmund King, the AA’s president, added: 'For too long, UK drivers have been hostage to the whims of fuel retailers and not being able to see that a far lower pump price could be found just down the road.
'Fuel station owners who priced below the artificially high levels of nearby rivals but had little way of getting that message out to potential customers now have the means to do so.'
Like in Austria, France and other parts of Europe where the sector is legally required to provide live fuel price information, the AA believes it will trigger a major shake-up that will go in the favour of the nation's motorists.
'Drivers will view prices on mobile phones and smart devices, using search engines like the AA App, and will eventually choose where to buy cheaper fuel at the most convenient place by looking at the information screens in their cars,' King said.
The Petrol Retailers Association (PRA) has repeatedly defended the industry in light of the CMA's investigation, citing increases in operating costs, higher taxation and skyrocketing energy prices since the pandemic.
Its executive director Gordon Balmer said its members 'have worked hard to collaborate with the Government to ensure a successful launch of the scheme'.
With Fuel Finder on the horizon last week, retailers were already slashing their forecourt prices.
The UK average price of petrol dropped to 131.8p a litre on Friday - the lowest it has been since June 2021.
The RAC - which tracks average fuel prices on a daily basis - said the average price of unleaded has fallen by more than 5p since the start of December, saving drivers nearly £3 every time they fill up a typical 55-litre family car.
Diesel prices have fallen too by 3p per litre since the start of the year to 140.88p on Friday.
However, experts have warned that prices could make a U-turn in the coming days and weeks as tension in the Middle East intensifies.
Oil prices last week shot to a six-month high on rising concerns of a US military attack on Iran.
Operators who fail to comply with the rules and the Fuel Finder Scheme's strict half-hour window to update petrol and diesel price information face the threat of fines from the CMA
Retailers must electronically submit their live pricing to the central database within half an hour of increasing or reducing the cost of a litre of petrol and diesel at the pumps.
However, there is currently no specific government app that displays the information.
Instead, the open-source data is being made available to businesses, motoring organisations and website developers to create their own maps and services to direct motorists to the cheapest fuel.
Drivers can access the data directly via the government website, though it is only available via an Excel spreadsheet.
Retailers are required to share pricing information for other services and amenities too.
This includes the cost to access car wash facilities, tyre air pumps and toilets, though changes to pricing must be updated within three days rather than the stricter 30-minute window for petrol and diesel.
Localised fuel pricing information has readily been available from a number of sources for years, like dedicated sites including PetrolPrices.com.
These typically have used data from retailers on a voluntary basis or drivers submitting price information directly.
The AA says it expects that it will take 'a little while for the system to bed in fully' but said it will soon transition from the voluntary data it uses on its website and app to Fuel Finder pricing information.
Guidance from the government has called for drivers to remain vigilant and report errors when prices at a forecourt fails to match those on the Fuel Finder Scheme database.
Those who fail to comply with the rules and the scheme's timing thresholds face fines from the CMA.
'The CMA’s approach to investigating suspected breaches will be targeted and proportionate and will depend on the nature and severity of those breaches,' an official guidance document states.
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