Tesco customers have been issued a 48-hour warning to fill up and secure modest savings amid escalating fuel costs. The supermarket chain runs approximately 600 petrol forecourts across the nation and is presently providing motorists with 5p off per litre. However, thousands of individuals who have received the vouchers are being cautioned that they will become invalid after August 23.
Pump prices reach highest level since 2022
Pump prices have climbed to their highest point since 2022, placing considerable strain on motorists' finances. Fuel costs throughout Britain have reached an average of 159.89p, according to the latest data. This marks the most significant level since November 2022, when prices were falling from a record peak of 191.55p in 2022 amid Russia's invasion of Ukraine.
Tesco shoppers were entitled to claim 5p off their fuel upon spending £60 or more in-store. Customers receive a voucher which can be utilised to reduce costs on diesel and petrol when refuelling at a Tesco forecourt. The promotion ran until August 16 with vouchers remaining valid for redemption until Sunday 23 August. The voucher delivers a maximum discount of £10 and must be produced in paper format when settling payment for fuel.
CMA warns over passive pricing strategies
This emerges as fresh officials disclosed some petrol stations are continuing to fail in passing on alterations in wholesale prices swiftly enough and over a thousand warning letters have been dispatched to retailers neglecting to submit prices to the Fuel Finder service, the UK competition watchdog confirmed. The Competition and Markets Authority (CMA) raised concerns in its latest quarterly update on the fuel market over "passive pricing strategies" used by the majority of retailers, which it said were helping to keep profit margins high amid soaring cost pressures on drivers from the Iran war.
It discovered that certain retailers failed to immediately pass on reductions in wholesale diesel prices to motorists between May and June, which could have stimulated greater competition within the market. The CMA noted that while overall fuel pump costs declined in June, prices remained considerably higher than before the Middle East conflict, with retailer profit margins sitting at or above the historically elevated levels recorded in 2025. However, it uncovered no evidence of profiteering amongst fuel retailers in the wake of the Iran war.
Fuel Finder registration and monitoring
The CMA also disclosed that it had dispatched 1,166 letters to retailers and 53 compliance notices since April, cautioning against failure to register with the Government-run Fuel Finder price comparison scheme. It confirmed that approximately 97% of petrol stations are now registered with the scheme, accounting for roughly 99% of all fuel sold across the UK, and that no fines had yet been issued. The regulator will now "actively monitor" and conduct a more thorough review of the road fuel market this autumn to ensure that motorists throughout the UK are being charged a fair price at the pumps.
Sarah Cardell, chief executive of the CMA, said: "We know prices at the pump are putting real pressure on drivers' pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East. We will continue to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers. In the meantime, Fuel Finder can help drivers save money when they fill up."
AA criticises retailers over price failures
The AA stated that the CMA's update "once again highlights some failures to not charge a fair price for petrol and diesel – at the expense of everyday drivers". Edmund King, the AA's president, said: "Clearly, some fuel retailers are prepared to pass on lower costs promptly and help their customers. But many more, including large numbers of supermarkets, are not." He commended the Fuel Finder system as a "start in getting drivers to fight back against stubbornly high petrol and diesel prices".
Fuel Finder was established following a CMA recommendation in July 2023, after it determined that competition amongst retailers had deteriorated since 2019, with motorists paying nearly £1 billion more for fuel at supermarkets during the preceding year due to inflated margins. The scheme is operated by the Government and technology firm VE3. The AA noted that certain forecourts were pricing petrol at 10p per litre below that of nearby rivals, while average prices are failing to reflect the reductions witnessed at the close of last month.
Mr King said: "A 10p-a-litre crash in wholesale petrol in late July/early August has barely registered at the pump, with the UK average price trickling down a mere 0.4p a litre in seven days to the current 161.2p UK average. Wholesale petrol costs have rebounded since then but still remain 1p to 2p a litre lower than the peaks in mid to late July."
A spokesperson for the Department for Energy Security and Net Zero said: "Forecourts must pass on any fall in wholesale prices to motorists quickly, and it is clear that the road fuel market is still not working as competitively as it should. We're keeping an eye on forecourts up and down the country, and our Fuel Finder scheme makes it harder than ever to rip off customers who can see the cheapest fuel in their area – saving households who own a car around £40."
