Petrol and diesel profit margins still persistently high, says watchdog

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Petrol and diesel profit margins remain at "persistently high levels" despite prices at the pump having fallen, according to the UK's competition watchdog.

The Competition and Markets Authority (CMA) also challenged retailers' claims that this was a result of higher operating costs.

In its first annual road fuel monitoring report, the CMA said competition in the sector was "weak".

It said if there was more competition, drivers would see better fuel prices at the pump.

Petrol was 136.8p per litre last week, according to government tracking, while diesel was 146.1p per litre.

The CMA report was published as the government prepares to launch its "fuel finder" scheme, which will allow drivers to compare real-time fuel prices.

Retailers will have to sign up to the scheme and report price changes within 30 minutes of them being implemented.

Dan Turnbull, senior director of markets at the CMA, said: "Fuel margins remain at persistently high levels – and our new analysis shows operating costs do not explain this.

"We know fuel costs are a big issue for drivers, especially at this time of year with millions making journeys across the country."