Drivers across the UK have been watching fuel prices closely following the recent Middle East tensions, but according to the Competition and Markets Authority (CMA), there’s no clear evidence that retailers have been widely overcharging motorists.
Despite fears of price gouging after the US-Israel conflict involving Iran pushed global oil prices higher, the watchdog says average fuel margins have remained largely stable.
TL;DR
- No widespread fuel price gouging found by the CMA
- Average retailer margins stayed close to 10.7p per litre
- Some retailers did increase margins—investigation ongoing
- Global oil prices (not retailers) are driving most pump increases
- Drivers could still save up to £9 per tank by shopping around
What the CMA found
The CMA stepped up monitoring earlier this year amid concerns that rising wholesale costs could be unfairly passed onto drivers. But its latest findings suggest most retailers have kept margins in line with 2024 averages.
Retail margins, the gap between what fuel costs retailers and what you pay at the pump, remained around 10.7p per litre between February and March.
However, it’s not all clean-cut.
- Two supermarkets and three other retailers saw margin increases
- The CMA is now investigating these cases further
- A separate spike (12.7p per litre) was also flagged in December–January
CMA chief executive Sarah Cardell confirmed a deeper update is expected soon.
Why fuel prices still rose
Even without widespread profiteering, drivers have still felt the pinch and there’s a clear reason why.
Around 20% of the world’s oil passes through the Strait of Hormuz, which has effectively been shut for weeks. That’s sent global oil prices soaring, with Brent crude hitting over $126 per barrel - its highest level since 2022.
That surge fed directly into UK pump prices:
- Petrol peaked at 158.3p per litre
- Diesel hit 191.5p per litre
- Prices remain significantly higher than pre-conflict levels
Are prices falling fast enough?
Here’s where frustration kicks in.
While wholesale costs have dipped slightly at times, pump prices haven’t always followed at the same pace. This has reignited concerns about so-called “rocket and feather” pricing, where prices shoot up quickly but fall slowly.
The RAC and AA both raised concerns:
- RAC says prices haven’t dropped as quickly as expected
- AA highlights diesel wholesale drops not fully reflected at pumps
- Motorway fuel can still cost up to 20p more than A-road prices
In short: not blatant gouging, but not perfectly fair either.
The “postcode lottery” problem
Another issue drivers will recognise: where you fill up matters.
The CMA found significant regional price differences, meaning drivers could save up to £9 per tank simply by choosing a cheaper station nearby.
That inconsistency continues to fuel concerns about competition in the market.
Government and CMA response
The government has backed the CMA’s findings but made it clear that any retailers pushing margins too far will be held accountable.
The CMA has also pledged to remain “vigilant”, especially to ensure that any future drops in wholesale costs are passed on to consumers.
Meanwhile, investigations are ongoing into:
- Retailers with rising margins
- “Rocket and feather” pricing patterns
- Heating oil pricing following consumer complaints