The Competition and Markets Authority (CMA) has reassured petrol drivers that price gouging is not occurring on UK forecourts amid the ongoing conflict with Iran. The watchdog stated that the difference between the price retailers pay for fuel and the price they sell it at – known as fuel margins – have been “broadly unchanged” since the war began on February 28.
Fuel Margins Remain at Historically High Levels
However, the CMA did discover increased fuel margins in March “for a minority of retailers” and has committed to investigating these cases. It also noted that fuel margins in March were close to or equal to the average of 107p per litre seen last year, which indicates they remain at “historically high levels”, reflecting “ongoing concern about a lack of competitive pressure”.
Potential Savings for Drivers
The CMA highlighted that “significant local price variations” mean there are potential savings of up to £9 for a tank of petrol or diesel “if drivers shop around”. This suggests that motorists could benefit from comparing prices at different forecourts.
CMA Chief Executive Comments
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. That's why we've stepped up our monitoring. This scrutiny is working: on average, retailer fuel margins did not increase. We will remain vigilant to ensure any fall in costs is passed on quickly to motorists.”
Government Response
Minister for energy consumers Martin McCluskey said: “We welcome the CMA's report, which shows most retailers have avoided boosting their margins and acted responsibly. However, there are some that haven't. We fully support the CMA in asking questions of those and, alongside them, will hold them to account. Fuel Finder will drive competition up and costs at the pump down by forcing all petrol stations to share their prices, and from today the CMA will use its powers to take action against the few remaining petrol stations not yet part of the scheme.”
AA Spokesperson Raises Concerns
AA fuel price spokesman Luke Bosdet said: “There may be no evidence of price gouging following the oil price shock in March, but the UK has a situation now where the wholesale cost of diesel has plummeted more than 10p a litre since early April but pump prices are down by just 2p. There is as much as a 20p gap between the price of petrol on motorways as opposed to major A-roads. Maybe not price gouging, but ‘rocket and feather’ and the pump price postcode lottery are as strong as ever. The competition watchdog still has a lot of work to do.”
Drivers are encouraged to use price comparison tools and shop around to secure the best deals at the pump.
