Motor Fuel Price (Open Data) Regulations 2025 Debate

Full Debate: Read Full Debate
Department: Department for Energy Security & Net Zero
Thursday 4th December 2025

(1 day, 7 hours ago)

Grand Committee
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Moved by
Lord Whitehead Portrait Lord Whitehead
- Hansard - -

That the Grand Committee do consider the Motor Fuel Price (Open Data) Regulations 2025.

Relevant document: 39th Report from the Secondary Legislation Scrutiny Committee

Lord Whitehead Portrait The Minister of State, Department for Energy Security and Net Zero (Lord Whitehead) (Lab)
- Hansard - -

My Lords, this is my first appearance before the Grand Committee—and a very welcome one for me. In my previous parliamentary career, I spent a lot of time trying to take statutory instruments apart as a member of the Opposition. I would pick little bits from those statutory instruments into pieces, to try to put the then Minister on his or her toes. I am sure that practice will not be followed in this House for statutory instruments, but I accept that, if it is, I will have only myself to blame for what transpires.

These regulations were laid before the House on 13 October 2025. They seek to establish the legislative basis for creating a statutory open data scheme—fuel finder—which will increase fuel price transparency across all UK petrol filling stations, empowering consumers to compare prices on a near real-time basis.

In recent years we have witnessed the rise in fuel prices and the profound impact that this has had on households, businesses and communities across the UK. Between 2021 and 2022, the price of petrol and diesel rose by over 60p per litre, driven by global supply and demand shocks stemming from the Covid-19 pandemic and the Russian invasion of Ukraine. In 2022, drivers paid an estimated £900 million more at the pumps across major supermarket retailers than the previous year. By 2023, higher fuel margins across the whole market had cost drivers a further £1.6 billion.

The CMA found that price rises for fuel and disparities between prices at a local level were largely driven by major retailers using this volatile backdrop, and the lack of transparency, to unfairly increase their profit margins at the expense of consumers across the UK. That therefore contributed to the cost of living crisis and the hardship that families up and down the country have felt in recent years. That is why we are delivering change to protect consumers, to put an end to unfair pricing practices and to increase transparency in the fuel retail market.

In line with the CMA’s recommendations as part of the road fuel market study, we are rolling out a statutory open data scheme for fuel prices—fuel finder—at the end of this year. These regulations will supersede the CMA’s current voluntary scheme and mark a decisive step in empowering motorists across the UK to compare prices easily and to make informed choices about where they purchase their fuel. Motorists across the UK will have greater visibility on the range of choice available to them, and retailers will be incentivised more than ever to offer more affordable prices in a more competitive market. Perhaps the fuel finder name ought to be “cheaper fuel finder” because that, I hope, will be the inevitable consequence of what these measures will put forward for the motorist.

I turn now to the detail of this instrument. These regulations will require all petrol filling stations in the UK to register and report changes to their fuel prices within 30 minutes of a change. The information will be freely available, and almost in real time. This marks a fundamental step towards restoring competition and fairness in a market that has proved that it will not self-correct without government intervention. By making this information openly available to any third parties that request it, we will enable the market to integrate this data into digital mapping services and vehicle satellite navigation services to help motorists locate the best prices in their area.

We recognise that this represents a change in operations for industry, and because of this we are taking a pragmatic approach. From 2 February, forecourts will need to be registered with fuel finder and begin reporting price changes. For the first three months, until early May, the CMA’s emphasis will be on supporting businesses to comply with the new regime, rather than enforcement. This will allow businesses a chance to adapt smoothly. We want retailers to succeed in meeting these obligations, and we will work with them to make sure that the transition is as straightforward as possible.

--- Later in debate ---
Earl of Effingham Portrait The Earl of Effingham (Con)
- Hansard - - - Excerpts

My Lords, I thank the Minister for bringing this statutory instrument forward. This was indeed a Conservative initiative, started under the previous Government and designed both to increase competition and to benefit consumers; His Majesty’s loyal Opposition are of course pleased that the current Administration are continuing our work.

The need for this measure was made apparent by the excessive profits earned by major retailers due to a sudden rise in fuel prices in the wake of global supply shocks resulting from the Covid pandemic and Russia’s attack on Ukraine. By 2023, higher fuel margins across the whole market were costing drivers a total of £2.5 billion, £900 million of which went to major supermarket retailers as a result of a 60p per litre hike in fuel prices for consumers.

This instrument aims to create a fairer fuel market. Competition is its aim, and competition is best achieved through the transparency of data and information. Artificially increasing margins becomes materially more challenging when the consumer is no longer on the wrong side of asymmetric information and fully knows that he or she can drive just a few minutes down the road to save money. Being aware of pricing is one part of this, but knowing whether margins are fair and whether their past increases were proportionate is another equally important factor.

Although this instrument requires petrol filling stations to report price changes, it does not extend to reporting on the availability of fuel types. We would be most grateful if the Government could address this issue at pace. It cannot be logical that a driver will be able to see a competitive price but then be disappointed by an empty pump when they arrive at their destination. Is the Minister giving consideration to this? Do the Government accept that an individual using a fuel finder app will indeed be disappointed to arrive at the pump only to find that what they want is not available and will, as a consequence, potentially lose faith in the system?

If it occurs within the Government’s timeframe, the launch of the fuel finder will come two years after the CMA’s recommendation and a year later than originally planned. The Chancellor included the fuel finder in her Budget speech, but she failed to mention that it is a continuation of a Conservative policy and avoided saying that the measure was delayed by her own Government. Instead of the Government delaying for a year then, potentially, blaming complexity for not being able to introduce more thorough transparency measures while protecting low-volume providers, can we please have actions, not words? A potential solution would be to create categories of petrol filling stations and to require major retailers to report in more detail. We must ask: why is this out of the Government’s scope?

We are also concerned about the instrument’s timescale. The Under-Secretary of State for Energy Consumers confirmed that guidance and training would be published before the rollout of the whole programme, but this will come as little reassurance to petrol filling stations. Both stations and providers need time to adapt, prepare and comply with these new regulations. It will do little to help them if the guidance is released as the regulations come into force. That will potentially happen if the Government leave this too late. Additional last-minute costs will be passed on to the consumer, which is precisely what this instrument aims to prevent.

The Under-Secretary of State said that the scheme is to be launched at the year end, but the full provisions of this instrument will come into force only on 2 February next year. Can the Minister please confirm that the guidance will come out before the end of the year, given that the Member in the other place was slightly less clear as to which date the guidance will be published by?

Despite these reservations, His Majesty’s loyal Opposition welcome the introduction of this measure that we initiated. It will provide a more competitive market and drive the rate of price increases down. Our aim should be to create a more certain and more competitive market for the consumer, bringing costs down for hard-working people. We very much hope the Government will take our suggestions on board and action them accordingly.

Lord Whitehead Portrait Lord Whitehead (Lab)
- Hansard - -

My Lords, I thank noble Lords for their contributions and in particular the noble Earl, Lord Effingham, for his very constructive contribution. As he rightly points out, this proposal originated with the previous Government but, I think, fell at the time of the general election—it had started to go through the House. The present Government have been able to take that original proposal and have some extensive consultations and discussions with industry and various other key actors in this field to make sure that the fuel finder was as streamlined and as effective as it could be. That is the form in which it comes before us today.

In terms of the regulations coming in in February, the aim is to make sure that this proposal comes in by the end of the year but, as the noble Earl will appreciate, there is a large number of technical issues to resolve in order to meet that date. What I can best say today is that there is an aim to do that by the end of the year and we hope that will be possible. I hope the noble Earl will understand that there is a lot of work to get this in place and we hope that will be finished in time for that target date to be achieved.

When the fuel finder was originally introduced, there was some suggestion that availability at the pumps should be included among the things that petrol stations had to provide. However, following substantial consultation and considerations of the practical challenge of reporting fuel unavailability—officials did conduct a thorough analysis—it was decided to postpone that and remove the requirement from the fuel finder scheme. But, as I have emphasised, that is a question of postponing and removing for the time being.

If a number of those really practical difficulties can be resolved, that might be something for the future as far as the scheme is concerned, but what the Government wanted to do was make sure that we could introduce a practically implementable and early actionable scheme so that we could get this running on an open access data arrangement as soon as was conceivably possible. I do, however, understand the noble Earl’s concerns. I happen to have an electric car, so perhaps I am a little outside the considerations in this instrument, but I know the problems of an electric car owner thinking that they have found an electric charge point only to find that someone else has been using it for the past three hours and they cannot get near it. There are measures in the industry to resolve that sort of problem, so this is something worth looking at for the future.

I emphasise that the first three months of those technicalities will be until early May. The CMA’s emphasis, as the enforcer, will be on supporting businesses to comply with the new regime rather than enforcement, as I have said, so there will be a period coming in to make sure that the scheme works well and that everybody is undertaking it properly. This scheme is well founded—I welcome the support that has been given to it by the noble Earl and the party opposite—and I am sure that, with a good wind from everybody in this place, it can be in place as soon as possible, to the benefit of motorists across the country.

Motion agreed.