CMA Finds Global Oil Costs Drive UK Fuel Price Hikes

The Competition and Markets Authority (CMA) found that soaring UK fuel prices are primarily driven by rising global oil costs rather than widespread price-gouging by retailers. Following the start of the conflict in the Middle East on February 28, retail fuel margins remained broadly unchanged, averaging near the previous year's 10.7 pence per litre. The CMA attributed the price spikes to oil reaching its highest level since 2022, influenced by Iran's tanker restrictions in the Strait of Hormuz and reports that U.S. President Donald Trump could escalate the war.

Despite the overall trend, the CMA identified margin increases for two supermarkets and three non-supermarket retailers during March. Sarah Cardell, the CMA chief executive, announced that the agency is investigating these specific cases to determine why margins rose. While the watchdog maintains that scrutiny is working, organizations such as the AA and RAC noted that pump prices have not fallen as quickly as wholesale costs, suggesting a persistence of "rocket and feather" pricing.

In response to the findings, Minister for Energy Consumers Martin McCluskey announced that the CMA will use its powers to force the remaining petrol stations to join the Fuel Finder price-sharing scheme. McCluskey stated this move aims to drive competition and lower costs at the pump, while Prime Minister Keir Starmer affirmed the government's readiness to act against companies ripping off customers.