But the CMA said the “sustained” increase in fuel prices was concerning and there was not enough competition in the fuel market, which continued to drive prices up.
Non-supermarket fuel margins had risen to 10.2% in August from 7.8% in April, the watchdog said.
“While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins,” said Dan Turnbull, senior director of markets at the CMA.
“We therefore remain concerned about weak competition in the sector and the impact on pump prices,” he added, especially while costs of living remain high.
“The more people save on fuel, the more they have to spend in other areas”, he said.
The average petrol price at the end of October was 134.4p per litre, and for diesel it was 139.7p.
However, the PRA’s executive director, Gordon Balmer, said it was crucial that the increasing costs facing retailers – notably business rates, National Insurance and the minimum wage – were included in future analysis to “give a complete picture”.
