UK Watchdog Warns Fuel Retailers Over Passive Pricing Strategies

The Competition and Markets Authority reported that a majority of British fuel retailers are employing passive pricing strategies to maintain high profit margins despite declines in wholesale costs. In a quarterly update, the regulator found that many retailers failed to promptly reduce pump prices for diesel between May and June, leaving margins at or above the historically high levels recorded in 2025.

While the watchdog found no evidence of profiteering specifically linked to the war in Iran, it noted that pump prices remain significantly higher than pre-conflict levels. To enforce transparency, the regulator issued 1,166 warning letters and 53 compliance notices to retailers that failed to register with the government-run Fuel Finder price comparison scheme.

The AA criticized the market's lack of fairness, noting that a 10p-a-litre crash in wholesale petrol prices in late July had little impact on consumer costs. The Department for Energy Security and Net Zero added that the road fuel market is not working as competitively as it should. The regulator plans to conduct a detailed review of the road fuel market in the autumn to ensure fair pricing for consumers.