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The government has taken a firm stance against energy companies exploiting the surge in oil prices, with Energy Secretary Ed Miliband assuring the public that profiteering will not be tolerated. He indicated that the competition regulator, the Competition and Markets Authority (CMA), is prepared to intervene to prevent petrol price “rip-offs,” a move aimed at protecting consumers amid rising fuel costs.
The recent spike in oil prices, driven by conflict in the Middle East, has heightened worries about its impact on household energy bills. Consumers dependent on heating oil are experiencing steep price increases, while petrol stations have also raised pump prices. In response, Miliband has left open the possibility of the government offering direct financial support or extending the existing freeze on fuel duty if the situation persists.
Addressing criticisms from the opposition, shadow transport secretary Richard Holden accused Chancellor Rachel Reeves of failing to take effective measures to alleviate the growing cost-of-living crisis. Nevertheless, Miliband resisted calls to divert from the country’s net zero commitments, emphasizing the need to move away from volatile fossil fuel markets. He highlighted the importance of “clean, homegrown power that we control,” calling it the key lesson emerging from the current energy crisis.
While some industry figures have urged the government to expand oil and gas exploration in the North Sea as a response to the price shock, Miliband disagreed, affirming the government’s existing policy to maintain production from current fields without issuing new exploration licenses. He argued that opening new licences would not reduce consumer bills. Meanwhile, the government continues to face pressure to act on both short-term energy costs and longer-term energy security, especially given disruptions in critical supply routes like the Straits of Hormuz. In a related development, Miliband plans to introduce a streamlined process to accelerate the construction of new nuclear power stations, aiming to avoid past setbacks caused by delays and bureaucracy.
In the immediate term, action on surging petrol and heating oil prices appears urgent. Miliband and Chancellor Reeves are scheduled to meet with petrol retailers to stress that the CMA is vigilant against unjustified price increases. Earlier in the week, Reeves drew attention to the disparity in fuel prices across different forecourts, which range from £1.27 to £1.80 per litre. Miliband expressed their shared concern and noted that the CMA is carefully monitoring the market and ready to take enforcement action if unfair practices arise. The watchdog possesses powers, including levying fines, to combat price gouging.
Although further steps to support households will depend on the duration of the Middle East conflict, Miliband pointed out that the Chancellor has in the past demonstrated a willingness to intervene, referring to measures in the previous November Budget that included additional support for vulnerable households. Currently, the freeze on fuel duty—due to be lifted in September—is under reconsideration. Holden criticized the Chancellor for inaction, accusing her of lacking the “backbone” to cancel the planned 5p-per-litre fuel duty increase, which he warned would worsen pressures on commuters, families, and small businesses already burdened by rising costs. He urged reconsideration in light of the escalating situation in the Middle East
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