Petrol prices start to drop but concerns over how market operates

• Average price of petrol falls from record high and is expected to drop further.
• Competition and Markets Authority is conducting an in-depth review of the fuel market after short review found "cause for concern". 
• Retailers accused of being too slow to reduce pump prices. 

The average price of petrol has finally dropped from its record highs, following weeks of wholesale price reductions. 

The average petrol price is now 188.76p-per-litre - down from its all-time high of 191.53p earlier this month, while the average price of diesel is 196.96p (as of 17 July 2022).

The price of both fuels is predicted to drop further in the coming days. 

However, motoring groups such as the RAC and fuel campaigners FairFuelUK have been calling for retailers to cut the price of fuel for weeks, as wholesale prices have been falling, and have accused petrol retailers of acting too slowly. 

Earlier this month, an urgent review into the fuel market by the Competition and Markets Authority (CMA), requested by Business Secretary Kwasi Kwarteng, found “cause for concern” in some parts of the market. 

It is now conducting a more indepth review, with an interim update due to be published in the autumn. 

Sarah Cardell, CMA general counsel, said that “the growing gap” between the oil price, and the wholesale price of petrol and diesel, was a “cause for concern”. 

“We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it,” she said. 

"If evidence emerges of collusion or similar wrongdoing, we won’t hesitate to take action." Sarah Cardell, CMA

“On the whole the retail market does seem to be competitive, but there are some areas that warrant further investigation. These include finding out whether the disparities in price between urban and rural areas are justified.”

She added that if there was any evidence of collusion or similar wrongdoing, the CMA “won’t hesitate to take action”.