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CMA clears UK fuel retailers of widespread price-gouging
The UK's Competition and Markets Authority (CMA) has found no evidence of systemic overcharging by fuel retailers in the wake of the US-Israel war with Iran, despite earlier government warnings of potential exploitation.
Margins remain stable, but exceptions emerge
The CMA reported that average retail fuel margins-calculated as the difference between wholesale costs and pump prices-held steady at around 10.7 pence per litre (ppl) between February and March, matching last year's average. However, two supermarket chains and three independent retailers recorded higher margins during the same period.
CMA Chief Executive Sarah Cardell confirmed the regulator is investigating these outliers and will release further findings in May. She also flagged a separate period of elevated margins (12.7 ppl) in December and January, prior to the conflict.
Global oil prices drive UK pump costs
The CMA attributed the recent surge in UK fuel prices to broader market pressures, particularly the closure of the Strait of Hormuz-a critical chokepoint for 20% of the world's oil and liquefied natural gas (LNG) shipments. Brent crude prices spiked to $126 (£94) per barrel this week, the highest since 2022.
According to RAC data, petrol prices peaked at 158.3p per litre in mid-April, while diesel hit 191.5p. Though prices have since dipped slightly, petrol remains 24.2p per litre more expensive than pre-war levels, and diesel is up 46.0p.
"Prices at the pump haven't fallen as quickly as wholesale data suggested they should," said RAC Head of Policy Simon Williams. "Recent wholesale increases will likely halt further reductions."
Local price disparities persist
The CMA highlighted significant regional variations, with drivers potentially saving up to £9 per tank by comparing prices. Energy Consumer Minister Martin McCluskey praised most retailers for acting responsibly but vowed to hold outliers accountable, backing the CMA's scrutiny.
The regulator is also examining whether retailers engaged in "rocket and feather" pricing-raising prices rapidly when wholesale costs rise but lowering them slowly when costs fall. Similar patterns were observed after Russia's 2022 invasion of Ukraine.
Consumer groups demand further action
The AA noted that diesel wholesale costs had fallen faster than pump prices, while motorway petrol prices exceeded those on A-roads by up to 20p per litre. AA spokesman Luke Bosdet called for stronger oversight, stating: "The pump-price postcode lottery and 'rocket and feather' pricing remain entrenched."
The CMA is separately investigating heating oil prices after receiving consumer complaints about retailer practices.
Government and regulator remain vigilant
Cardell reiterated the CMA's commitment to ensuring wholesale cost reductions are passed on to drivers. Prime Minister Sir Keir Starmer had previously warned of government intervention if retailers exploited the crisis, a claim forecourt operators dismissed as "inflammatory."
