Drivers can compare fuel prices at different petrol stations - how does it work?

Drivers can now compare the cost of fuel offered by all petrol stations across the UK as part of a government scheme to help people to shop around for the best price.

From Monday, garages and fuel stations must report their prices to third-party apps and websites within 30 minutes.

Chancellor Rachel Reeves said the Fuel Finder Scheme could save the average household £40 a year.

Motoring groups have said that motorists can end up paying 20p per litre more for petrol or diesel depending on where in the country they fill their tank.

The Fuel Finder Scheme will allow "drivers to find the best deals and spur competition as fuel retailers compete for customers," the Competition and Markets Authority (CMA) said.

The UK watchdog recommended the scheme after publishing a number of reports into fuel prices on UK forecourts.

The most recent study found that competition remained "weak" between petrol stations and profit margins for retailers were "persistently high".

The Petrol Retailers Association said the industry was facing higher wage and tax bills but pump prices were much cheaper than the highs of 2022 and 2023, following Russia's full-scale invasion of Ukraine which sent oil prices soaring.

The CMA found that retail prices tended to "rise like a rocket, but fall like a feather" in response to increases or decreases in the cost of crude oil.

The shared price database policy was first put forward by the Conservatives in 2023, and announced by the Labour government in last year's Budget.

Although the government's Fuel Finder Scheme sources and shares pricing data - as well as forecourt services such as car washes, air pumps, and toilets - there is no specific government app to direct motorists to the cheapest forecourt or garage.

Instead, this open source data will be used by established apps and websites that already map out and compare pump prices across the UK.

The difference is that previously, sharing price data was voluntary - now all businesses that sell petrol and diesel have to upload their price changes to a government database.

Current comparison apps and websites include PetrolPrices, Waze, My RAC and the AA app, as well as in-car navigation systems and online map services.

Government guidance says drivers who spot a difference between prices advertised on comparison apps and the fuel forecourt should report the discrepancy on its Fuel Finder website.

Petrol is currently 131.91p per litre, which is the lowest price since July 2021, according to the RAC motoring group. A litre of diesel is 140.97p.

RAC head of policy, Simon Williams, said: "As a growing number of the country's 8,300 forecourts submit their prices on a daily basis, drivers will be able to easily find the cheapest forecourts near them using their favoured app or sat-nav."