Petrol and diesel drivers have been urged to shop around when searching for fuel, as they could be overcharged by £9 per tank by some filling stations. Average prices for petrol and diesel increased by 26p and 50p per litre respectively between February and the end of April, according to a warning from the Competition and Markets Authority (CMA).
CMA Report Highlights Impact of Middle East Conflict
The latest report from the CMA warned drivers over the impact of the Iran war between the USA and Iran. Sarah Cardell, chief executive at the CMA, said: "The conflict in the Middle East has driven sharp increases in road fuel prices, putting real pressure on households and businesses across the UK. The CMA's job is to ensure these rises reflect genuine cost pressures - especially given our previous work showing competition among fuel retailers isn't as strong as it should be."
Increased Monitoring and Enforcement
Ms Cardell said the CMA would be increasing its monitoring of the fuel markets, adding that it would "remain vigilant to ensure any fall in costs is passed on quickly to motorists". "For it to deliver for motorists, all retailers must register and provide accurate data - and we will take enforcement action where they do not," Ms Cardell added.
Prime Minister Sir Keir Starmer has said the Labour Party government was primed to act if fuel companies tried to "rip off customers", but forecourt retailers denied price-gouging was taking place and criticised the use of "inflammatory language".
Retail Margins and Pricing Concerns
Across February and March the CMA found retail fuel margins - the difference between what retailers pay for fuel and the price they sell it for - were close or equal to the 10.7 pence per litre (ppl) average margin for last year. In March, the CMA said it would be considering how quickly fuel prices rise and fall as wholesale costs change, and whether there was evidence of so-called "rocket and feather" pricing.
Motorists are advised to compare prices at different filling stations to avoid overpaying. The CMA continues to monitor the situation closely and will take action against any retailers that fail to pass on cost reductions promptly.
