Fuel prices at UK forecourts continue to hover at historically high levels, with petrol and diesel margins averaging 107p per litre, according to the Competition and Markets Authority (CMA). Despite tensions from the conflict in the Middle East pushing oil prices up, the CMA’s recent report reassures consumers that widespread price gouging has not taken place since the conflict began on February 28.
The watchdog found that while fuel margins remained “broadly unchanged” overall, a minority of retailers exhibited increased margins in March. The CMA has pledged to investigate these cases further to ensure fair pricing practices. It also highlighted significant local variations in fuel prices, noting that drivers could save up to £9 on a full tank by shopping around at different stations.
Sarah Cardell, CEO of the CMA, emphasized the agency’s commitment to monitoring fuel costs closely: “The conflict in the Middle East has driven sharp increases in road fuel prices, putting real pressure on households and businesses across the UK. Our role is to make sure price rises reflect true cost increases, especially given that competition among retailers is not as strong as it should be.”
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Minister for Energy Consumers Martin McCluskey echoed this sentiment, praising most retailers for maintaining responsible margins while supporting the CMA’s efforts to hold others accountable. The new Fuel Finder scheme, which requires petrol stations to share their prices openly, aims to encourage competition and lower pump prices. The CMA is now empowered to take action against outlier stations that have not yet joined the initiative.
However, AA fuel price spokesman Luke Bosdet has expressed continued concern over pricing disparities. He pointed out that while wholesale diesel prices have fallen by over 10p per litre since early April, retail prices have only dropped by around 2p. Bosdet also highlighted a 20p price difference between motorway petrol stations and those on major A-roads, suggesting that although this may not qualify as outright price gouging, the so-called “rocket and feather” effect and regional price inconsistencies remain significant challenges.
The CMA’s ongoing vigilance aims to ensure that any reductions in costs are passed on swiftly to customers while promoting a more competitive fuel market across the UK.