The Government’s Competitions and Markets Authority (CMA) has stepped up its monitoring of UK fuel vendors to avoid excess price increases. This action plan has been driven by rising fuel prices in the wake of the U.S. war in Iran, with fuel topping $100USD a barrel for the first time since 2022.
The action plan will formally require retailers to provide fuel cost and sales data to give the authority the ability to review fuel profit margins being made by businesses from the point the conflict began, and as it continues.
Juliette Enser, CMA Executive Director for Markets, said: “Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures. We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”
In a statement released by the CMA, it said: “the CMA will also consider how quickly fuel prices rise and fall as wholesale costs change, and whether there is evidence of so-called “rocket and feather” pricing.” This should go some way to stop price gouging by fuel stations, who could raise the cost per litre to achieve a higher profit margin using the rise in wholesale prices as an excuse.
Commenting on the meeting between the Chancellor and Energy Secretary taking place today (13 March), regarding the ongoing concerns of fuel retailers, Edmund King, AA president, said; “The acceleration of the Government Fuel Finder is welcome and will help drivers to find the best deals where they live.
“However, as the conflict in the Middle East continues, the global increase in oil prices will hurt inflation, particularly with the diesel price hikes. As most goods and services are delivered by diesel vehicles, this will lead to price rises which the consumer will be stung with.
“We strongly encourage the Chancellor to delay the staggered reintroduction of the 5p fuel duty discount in order to offer some breathing space for hard pressed households.”
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