The Competition and Markets Authority (CMA) has warned fuel retailers that it will intensify monitoring of pump prices amid concerns over profiteering as the US conflict with Iran drives up wholesale costs. The watchdog said firms responsible for thousands of filling stations across the UK have been 'put on notice' as part of a wider government crackdown to prevent excess profits at the expense of consumers.
The CMA will require companies to provide revenue, costs, and sales data, accelerating a review of fuel industry margins initiated shortly after the conflict began. Global oil prices rose above $100 a barrel for the second time in a week on Thursday, as Iranian attacks on energy facilities and threats to block the Strait of Hormuz overshadowed a release of government reserves.
Petrol and diesel prices have risen sharply, along with home heating fuel costs. RAC figures show average petrol prices have increased by 5.5% (about 7p per litre) since US and Israeli airstrikes began nearly two weeks ago, while diesel is up 11.1% (nearly 16p). Experts warn sustained higher oil and gas prices could trigger inflation in Britain, dashing hopes for an interest rate cut by the Bank of England.
Chancellor Rachel Reeves has warned the government will not tolerate companies exploiting the crisis for 'excess profits' and has asked the CMA to step up vigilance. She is expected to meet fuel industry bosses and energy secretary Ed Miliband to demand fair deals for drivers and households. The CMA said it will analyse how quickly prices rise and fall as wholesale costs change, looking for evidence of 'rocket and feather' pricing—rapid increases followed by slow cuts.
Juliette Enser, the CMA's executive director for markets, said: 'While 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.'
