No Evidence of Widespread Fuel Price-Gouging, Watchdog Says

Why It Matters

The assessment reassures consumers that most retailers are not exploiting the conflict‑driven price shock, while signaling that targeted regulatory scrutiny remains essential to protect market fairness.

Key Takeaways

• CMA finds no widespread fuel price gouging after Middle East conflict
• Retail margins stayed near last year's 10.7p per litre average
• Two supermarkets and three independents saw margin spikes in March
• Pump prices remain 24p (petrol) and 46p (diesel) above pre‑war levels
• CMA will investigate rocket‑and‑feather pricing and report findings in May

Pulse Analysis

The escalation of the US‑Israel conflict with Iran has reverberated through global energy markets, pushing Brent crude to over $126 a barrel – roughly $119 when converted from the £94 quoted price. In the UK, this spike translated into record pump prices, with petrol peaking at 158.3 pence per litre and diesel at 191.5 pence. Recognising the potential for consumer harm, the Competition and Markets Authority stepped up surveillance in March, aiming to detect any abuse of market power amid volatile wholesale costs.

CMA’s analysis shows that, on average, retailer margins remained broadly unchanged from February to March, hovering around the 10.7 pence per litre benchmark recorded last year. However, the regulator identified a short‑term increase to 12.7 pence in the winter months and flagged margin growth for two supermarket chains and three independent forecourts in March. These anomalies have triggered a focused investigation into "rocket‑and‑feather" pricing – a pattern where retailers raise pump prices quickly when wholesale costs rise but delay passing on price cuts. The watchdog previously documented similar behavior after Russia’s 2022 invasion of Ukraine, underscoring the relevance of vigilant monitoring.

For drivers, the findings mean that while most retailers have not inflated margins, pump prices remain roughly 24 pence per litre for petrol and 46 pence for diesel above pre‑conflict levels. The CMA warns that local price variations could save motorists up to £9 per tank if they shop around. Ongoing scrutiny, slated for a May report, aims to ensure any future wholesale cost reductions are reflected at the pump, preserving competition and protecting consumer wallets in a persistently turbulent energy landscape.