The Competition and Markets Authority (CMA) has announced it is investigating several unnamed retailers after evidence of increased profit margins at certain forecourts, even as overall market margins remain relatively stable. This intervention comes as UK families continue to struggle with soaring pump prices linked to instability in the Middle East.
How Drivers Can Save Money
Motorists are being told they could save up to £9 when filling up their vehicles by choosing a cheaper forecourt. The CMA's recent report revealed substantial price variations between neighbouring petrol stations, indicating that those willing to compare options can achieve considerable savings. In some regions, the disparity is so pronounced that refuelling a standard family vehicle could cost up to £9 less simply by selecting a more affordable station.
Retailers have historically exploited international crises to inflate prices and margins well beyond typical levels. For instance, the CMA discovered the big four supermarkets profited by an estimated £900 million in just one year following Russia's invasion of Ukraine. The watchdog's most recent report revealed petrol prices increased by 26p per litre and diesel by 50p per litre between February and 20 April, heaping strain on household finances and enterprises alike.
CMA Investigation and Findings
The CMA stated average retailer margins – the gap between what companies pay for fuel and what they charge motorists – remained steady at approximately 10.3p to 10.7p per litre in March, broadly consistent with 2025 figures. However, it highlighted some instances where individual retailers raised margins, prompting a more thorough investigation into the factors behind those increases. Officials confirmed they will release additional findings in May once further data has been examined.
CMA chief executive Sarah Cardell stated the regulator is committed to preventing retailers from exploiting global circumstances for undue gain. She noted the Middle East conflict has driven sharp increases in road fuel prices, putting real pressure on households and businesses across the UK. Ms Cardell added: "Some individual retailers' margins did rise in March. We are investigating why and will report further in May."
Fuel Finder Scheme and Enforcement
The watchdog is also intensifying enforcement of the Government-backed Fuel Finder scheme, intended to assist drivers in locating the most economical petrol and diesel locally. Retailers have been cautioned they risk penalties if they neglect to register or supply accurate, current pricing information. Hundreds of petrol stations have already been issued warning letters for non-compliance. The initiative is anticipated to enhance competition by making price comparisons far more accessible for drivers – a development the CMA expects will ultimately reduce costs at forecourts nationwide.
The CMA cautioned that insufficient competition within the fuel sector continues to be a pressing issue, with profit margins remaining elevated compared to historical averages. The regulator's latest intervention arrives as families continue to struggle with soaring pump prices connected to instability in the Middle East, with petrol and diesel costs rising significantly in recent weeks.
