TL;DR: The recent Iran conflict has driven UK fuel prices sharply higher, costing motorists an estimated £307 million since late February. Despite global oil prices now easing, petrol prices remain stubbornly high, prompting the UK government to order an official CMA investigation into potential retailer profiteering.
Key Facts
- £307 million: The extra amount UK motorists have collectively paid for fuel since late February.
- 146.4p per litre: The current UK average petrol price, up from 132.9p just weeks ago.
- CMA investigation: Chancellor Rachel Reeves has tasked the Competition and Markets Authority with probing possible price inflation by retailers.
- Oil prices falling: Brent crude has dropped from $120 to around $100 per barrel, but this relief hasn’t reached the forecourts.
UK drivers hit with £307M fuel bill as Government orders retailer probe
UK motorists are facing yet another hit to their wallets as fuel prices surge across the country. Since late February, rising pump prices, linked to the Iran conflict and global oil market instability, have cost drivers an estimated £307 million in extra fuel costs.
The average UK petrol price has now jumped to 146.4p per litre, up from 132.9p just a few weeks ago. For drivers already feeling the pinch from the cost-of-living crisis, this latest increase has sparked frustration and confusion about why prices remain so high.
Why haven’t pump prices fallen with oil costs?
Many motorists are asking a fair question: if Brent crude oil has dropped from nearly $120 to around $100 per barrel, why haven’t UK fuel prices followed suit?
Experts say it comes down to what’s known as the 'rocket and feather' effect – prices rise quickly when oil costs jump but fall only gradually when they drop again. Disruptions to oil supply routes and refinery operations in the Middle East have also slowed the pace of recovery, keeping prices elevated on the forecourt longer than expected.
Essentially, global markets may be cooling, but the savings haven’t yet trickled down to everyday drivers.
CMA launches fuel price gouging investigation
The government has now stepped in. Chancellor Rachel Reeves has directed the Competition and Markets Authority (CMA) to launch an official inquiry into whether petrol retailers are unfairly holding prices high.
Energy Secretary Ed Miliband also weighed in, warning that the government “will not tolerate unfair practices or price gouging”. The investigation will examine whether wholesale savings are being passed on in a fair and timely way and whether retailers could face penalties if found guilty of overcharging.
Tensions rising on the forecourt
As prices climb, frustration is spilling over at petrol stations. According to the Petrol Retailers Association, there’s been a spike in verbal abuse toward forecourt staff, an unfortunate byproduct of the wider anger at fuel costs.
Spokesperson Gordon Balmer reminded drivers that retail employees have no control over pricing decisions and urged patience while investigations run their course.
For now, the best approach for drivers is to shop around for the lowest prices in their area. Price comparison tools and fuel apps can help find cheaper stations nearby. With the CMA inquiry underway, motorists are hoping it won’t be long before fairer pricing. and a little relief, finally returning to UK pumps.