No Widespread Fuel Price-Gouging Found
The competition watchdog has stated there is no evidence of widespread price-gouging by UK fuel retailers in the weeks following the start of the US-Israel war with Iran.
The Competition and Markets Authority (CMA) reported that overall average profit margins remained “broadly unchanged” between February and March.
In March, the CMA announced it would “step up” its monitoring of petrol and diesel prices after the Middle East conflict led to a spike in wholesale prices.
At the time, Prime Minister Sir Keir Starmer stated the government was ready to act if fuel companies attempted to “rip off customers,” but forecourt retailers denied price gouging and criticized the use of “inflammatory language.”
CMA Findings on Margins
Across February and March, the CMA found that retail fuel margins—the difference between what retailers pay for fuel and the price they sell it for—were close to or equal to last year’s average margin of 10.7 pence per litre (ppl).
Its findings indicated that “there has not been a widespread issue of retailers earning higher margins” since the war commenced.
However, it did find that fuel margins increased between February and March for two supermarkets and three non-supermarket retailers.
Sarah Cardell, CMA chief executive, stated: “We are investigating why and will report further in May.”
The CMA also reported it was examining why there was a period of higher margins—12.7 ppl—in December and January prior to the conflict.
Impact of Global Events on Fuel Prices
Data shows the price of diesel and unleaded petrol since 2022. Prices started under £1.40 a litre in late 2021, rising sharply in March 2022 to £1.65 (unleaded) and £1.77 (diesel) following Russia’s invasion of Ukraine. They peaked in July 2022 at £1.91 for unleaded and £1.99 for diesel before generally trending downwards. At the end of February 2026, as the US and Israel attacked Iran, prices were £1.33 for unleaded and £1.42 for diesel. Since then, they have risen sharply to £1.57 for unleaded and £1.89 for diesel as of 30 April 2026. The latest prices are marginally below their recent mid-April highs of £1.58 and £1.92 respectively.
The regulator noted its findings were situated within a context of “historically high” fuel margins for retailers. This reflects an “ongoing concern” regarding a lack of competition in the fuel retail market, it added.
The rapid rise in pump costs for UK drivers since the conflict began was attributed to wider cost pressures, particularly higher oil prices.
Approximately 20% of the world’s oil and liquefied natural gas (LNG) typically transits through the Strait of Hormuz, which has been effectively closed for two months, causing global energy prices to soar.
This week, the price of Brent crude surged to its highest level since 2022, briefly exceeding $126 (£94) a barrel.
According to RAC data, the price of petrol peaked at 158.3p a litre and diesel reached 191.5p a litre in mid-April. Pump prices have since slightly receded, but petrol remains 24.2p per litre and diesel 46.0p per litre more expensive than before the war.
Concerns Over Price Reductions and Competition
Simon Williams, RAC’s head of policy, stated that pump prices “haven’t fallen at the rate that our analysis of wholesale data indicated they should have.” He added, “In the last week though, the wholesale price of petrol has increased significantly, which will no doubt bring an end to any further reductions.”
Cardell affirmed that the CMA would remain “vigilant” to ensure any fall in wholesale costs is passed on to drivers.
The CMA also highlighted significant local variations in price, suggesting potential savings of up to £9 per tank of petrol and diesel if drivers shop around.
Martin McCluskey, Minister for Energy Consumers, commented: “Most retailers have avoided boosting their margins and acted responsibly. However, there are some that haven’t. We fully support the CMA in questioning those and, alongside them, will hold them to account.”
In March, the CMA stated it would consider how quickly fuel prices rise and fall as wholesale costs change, and whether there was evidence of so-called “rocket and feather” pricing. It previously found evidence of such pricing following Russia’s invasion of Ukraine in 2022, where prices increased quickly when wholesale prices rose but fell more slowly when wholesale prices dropped.
The AA reported that the wholesale cost of diesel had fallen more significantly than the price at the pumps, while drivers were paying up to 20p more for petrol on motorways compared to A-roads.
Luke Bosdet, the AA’s spokesman on pump prices, remarked: “Maybe not price gouging, but ‘rocket and feather’ and the pump-price postcode lottery are as strong as ever.” He concluded, “The competition watchdog still has a lot of work to do.”
The regulator also stated in March that it was examining heating oil prices after receiving “a number of concerning reports from consumers who rely on heating oil about their experiences with retailers.”
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