Government cracks down on fuel prices amid Middle East conflict

The Competition and Markets Authority (CMA) is stepping up efforts to make petrol and diesel pricing clearer for drivers. With wholesale costs rising due to tensions in the Middle East, the watchdog is warning fuel retailers: prices should reflect actual costs, not extra profit.

Thousands of fuel stations across the UK must now provide detailed data on revenue, costs, and sales sooner than planned. The CMA will use this to monitor how quickly prices rise and fall, keeping an eye out for “rocket and feather” pricing – when costs jump fast but drop slowly.

“Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures,” said Juliette Enser, executive director for Markets at the CMA. “We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”

The Petrol Retailers Association (PRA), which represents petrol retailers, said it would “address concerns about profiteering” at a meeting between the industry and the government on Friday 13 March.

“We hope to engage constructively to ensure there is a clear understanding of how our industry works,” Gordon Balmer, executive director of the PRA, told the BBC. He has previously said that surging wholesale oil prices “will mean pump prices will have to go up.”

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What this means for you

The CMA’s move is about greater transparency and protection at the pump. Here’s what you can expect:

• Clearer justification for price changes: You’ll have reassurance that increases reflect actual wholesale costs, not just sudden spikes by retailers.
• Faster reporting on unfair pricing: The CMA will quickly highlight any concerning patterns, giving drivers better insight into market behaviour.
• More confidence in comparison tools: Apps and websites that show local fuel prices become even more valuable, as the CMA’s monitoring makes sure that prices are more accurate and fair.
• A stronger voice for drivers: By reporting suspicious pricing, drivers actively contribute to market oversight.

What you should do

Here are six expert tips on how to navigate the rising fuel prices:

1. Check and compare prices before filling up

Use apps or websites such as Fuel Finder UK to check local petrol and diesel prices. Don’t assume the first station you see is the cheapest. This guide explains how to save money on fuel and shares the best strategies.

2. Time when you fill up

Prices can change daily, often following wholesale costs. Fill up when prices drop instead of immediately after an increase.

3. Report unusual price hikes

If you notice prices spiking faster than wholesale costs justify, report it to the CMA. Your reports help watchdogs detect unfair pricing practices.

4. Consider alternatives to reduce fuel use

Simple changes can make a difference: learn how to drive more efficiently with tips such as smoother acceleration, proper tyre maintenance, and reducing unnecessary weight in your car.

5. Stay updated on CMA reports

Follow CMA updates online to see if they have flagged unfair pricing practices. Knowing when retailers are being monitored can help you make better decisions.

6. Consider switching to an electric car

If you’re due to change your car soon, consider whether an electric car will suit your lifestyle so you don’t have to worry about petrol and diesel prices going up.

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