The UK's competition watchdog has found no evidence of widespread price-gouging by fuel retailers following the outbreak of the US-Israel war with Iran. The Competition and Markets Authority (CMA) reported that profit margins for retailers remained broadly unchanged between February and March, despite a spike in wholesale prices triggered by the Middle East conflict.
In March, the CMA announced it would intensify monitoring of petrol and diesel prices after the war led to a surge in wholesale costs. Prime Minister Sir Keir Starmer had warned that the government would act if companies tried to "rip off customers," but retailers denied any wrongdoing and criticized the use of "inflammatory language."
The CMA's analysis found that average retail fuel margins—the difference between what retailers pay for fuel and what they charge—were close to the 10.7 pence per litre (ppl) average seen last year. However, margins increased for two supermarkets and three non-supermarket retailers between February and March, prompting further investigation. CMA chief executive Sarah Cardell stated, "We are investigating why and will report further in May."
The regulator also noted a period of higher margins—12.7 ppl—in December and January, before the conflict began. It attributed the rapid rise in pump prices to higher oil prices, with about 20% of the world's oil and LNG typically passing through the Strait of Hormuz, which has been effectively closed for two months.
Brent crude prices recently hit their highest level since 2022, briefly exceeding $126 per barrel. According to RAC data, petrol peaked at 158.3p per litre and diesel at 191.5p per litre in mid-April. Though prices have since fallen slightly, petrol remains 24.2p and diesel 46.0p higher than before the war.
Cardell said the CMA would stay "vigilant" to ensure wholesale cost reductions are passed on to drivers. The watchdog also highlighted significant local price variations, with potential savings of up to £9 per tank for those who shop around.
The CMA is also investigating "rocket and feather" pricing—where prices rise quickly but fall slowly—previously observed after Russia's invasion of Ukraine in 2022. Additionally, it is examining heating oil prices following consumer complaints.