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The UK’s Competition and Markets Authority (CMA) has found no widespread evidence of price-gouging by fuel retailers in the aftermath of the US-Israel conflict involving Iran. According to the watchdog, average profit margins on fuel remained largely steady between February and March, showing no significant increases despite concerns raised earlier. Retailers faced criticism from the government, with Prime Minister Sir Keir Starmer warning that any attempts to unfairly raise prices would be met with action, though forecourt operators dismissed the allegations and criticized such statements as inflammatory.
Throughout the period in question, the CMA observed that retail margins—the gap between the cost retailers incur for fuel and the price paid by consumers—hovered around last year’s average of 10.7 pence per litre. Their assessment indicated that, overall, fuel companies were not profiting excessively following the outbreak of hostilities. However, the regulator did spot increased margins in March for some supermarkets and non-supermarket retailers, prompting an ongoing investigation into these specific cases with further details expected next month.
The CMA also scrutinized an earlier rise in margins during December and January, when the average margin had climbed to 12.7 pence per litre, well before the conflict began. It noted that fuel margins have historically been high, an issue linked to limited competition within the UK fuel retail sector. The recent spike in pump prices has mainly been attributed to external cost pressures, particularly rising oil prices. The closure of the Strait of Hormuz, a key passage through which about 20% of the world’s oil and liquefied natural gas flows, has caused global energy prices to surge dramatically.
While petrol prices peaked at 158.3p per litre and diesel at 191.5p per litre in mid-April, prices have since eased somewhat though remain significantly higher than before the conflict, with petrol up by 24.2p and diesel by 46.0p per litre. CMA chief executive Sarah Cardell emphasized the authority’s commitment to monitoring the situation closely, to ensure any reduction in wholesale costs translates into lower prices at the pump. The regulator also pointed out significant regional price disparities, noting potential savings of up to £9 per tank for drivers who shop around. Meanwhile, groups like the AA have highlighted issues such as “rocket and feather” pricing and the “pump-price postcode lottery,” where price disparities between motorways and local roads persist, illustrating ongoing challenges in the fuel market
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