The UK’s competition watchdog is investigating whether petrol stations are overcharging drivers in response to the Middle East conflict, amid accusations of “price gouging” from the Chancellor.
The Competition and Markets Authority (CMA) has told fuel retailers they must supply revenue, costs and sales data as it accelerates its review of fuel margins – the difference between what retailers pay for fuel and what they charge customers.
What the CMA Is Investigating
Juliette Enser, the CMA’s executive director for markets, said: “Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures.”
She added: “We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”
The watchdog will examine how quickly pump prices change relative to wholesale costs, and whether there is evidence of “rocket and feather pricing” – where prices rise rapidly in response to cost increases but fall more slowly than necessary as retailers look to boost profits.
Chancellor Accuses Retailers of “Price Gouging”
Chancellor Rachel Reeves has accused petrol retailers of exploiting the crisis, pointing to huge price variations between forecourts.
“Yesterday some petrol retailers were charging almost 180p a litre while others charged less than 130p a litre,” she said, vowing to meet companies this month “to get prices down at the pumps”.
That 50p per litre gap means some drivers are paying up to £25 more per tank than others – simply by filling up at the wrong station.
Where Prices Stand Now
According to the our latest Fuel Finder data, average UK fuel prices have hit their highest levels in more than 20 months:
- Petrol: 140.2p per litre
- Diesel: 158.9p per litre
Prices have increased by between 6p and 13p per litre since February 28, when the US and Israel launched strikes on Iran. The cost of filling a 55-litre family diesel car has jumped by as much as £6.67 in just over a week.
Government figures published this week show petrol at 135.67p and diesel at 149.01p – with petrol up 3.5p in a single week and diesel surging 6.9p.
A History of High Margins
This isn’t the first time fuel retailers have faced scrutiny. In December, the CMA warned that fuel margins remained persistently high compared to historic levels – and that this could not be explained by retailers’ operating costs.
Prices at the pump increased rapidly following Russia’s invasion of Ukraine in 2022 and have remained above pre-2022 levels ever since, even as wholesale costs fell.
Liberal Democrat Treasury spokesperson Daisy Cooper said: “People have already been paying through the nose to fill up their car, as forecourts have jacked up their profit margins over a period of months.”
She added: “Last time oil prices went up, petrol stations raised their profits even more, so people are now worried that this could happen yet again, at an even greater scale. Fuel giants should not be allowed to treat families already struggling with the cost of living like cash cows.”
Why Shopping Around Has Never Been More Important
The Chancellor’s revelation that prices range from under 130p to nearly 180p per litre shows just how much variation exists between forecourts. During volatile periods like this, the gap between the cheapest and most expensive stations widens dramatically.
A quick price check before filling up could save you £10-25 per tank – far more than at any point in recent memory.
Use CheckFuelPrices to compare prices at stations near you. Our data comes directly from the government’s Fuel Finder Scheme, updated within 30 minutes of any price change – so you’re seeing current prices, not yesterday’s figures.
What Happens Next?
The CMA will publish its findings once it has analysed retailer data. Meanwhile, the Chancellor has committed to meeting fuel companies this month to discuss pricing.
Oil prices remain above $100 a barrel with the Middle East conflict showing no signs of resolution. Experts have warned that petrol could reach 150p and diesel 160p or higher if the situation continues.
For drivers, the message is clear: expect further price rises, shop around for every fill-up, and consider whether every journey is essential.
Report Price Discrepancies
Spotted a forecourt charging significantly more than competitors nearby? You can help by reporting prices on CheckFuelPrices. The more drivers share information, the harder it becomes for retailers to charge excessive premiums without being noticed.
Transparency is the best defence against price gouging – and every report helps.
