The Competition and Markets Authority (CMA) has sent warning letters to hundreds of UK petrol stations after they failed to pass on falling wholesale fuel costs to drivers quickly enough. In its latest quarterly update on the fuel market, the regulator raised major concerns over "passive pricing strategies" used by a majority of retailers, which it said have kept profit margins high and added financial pressure on motorists amid the ongoing war in Iran.
Wholesale price drops not passed on
The watchdog found that while wholesale diesel prices dropped between May and June, many forecourts did not pass those savings on immediately, a delay that obstructed potential market competition. Although prices at the pumps saw a minor drop overall in June, costs remain significantly higher than before the Middle East conflict. Despite the high margins, the CMA confirmed it found no evidence of direct profiteering linked to the war.
Enforcement actions and Fuel Finder
As part of efforts to improve market transparency, the CMA revealed it has issued 1,166 warning letters and 53 compliance notices since April. The enforcement actions target operators failing to register with Fuel Finder, the Government’s price-comparison scheme run alongside technology firm VE3. The scheme was officially rolled out in February, and to date roughly 97% of UK petrol stations have registered, representing about 99% of all fuel sold nationwide.
Regulator and AA responses
Sarah Cardell, Chief Executive of the CMA, stressed that the regulator is watching closely. "We know prices at the pump are putting real pressure on drivers' pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East," she said. "We will continue to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers."
The AA echoed the regulator’s concerns, accusing many major retailers and supermarkets of failing to treat motorists fairly. Edmund King, President of the AA, noted: "Clearly, some fuel retailers are prepared to pass on lower costs promptly and help their customers. But many more, including large numbers of supermarkets, are not." He added that the Fuel Finder system gives motorists a starting point to "fight back against stubbornly high petrol and diesel prices".
The CMA confirmed it will "actively monitor" and carry out a more detailed review of the road fuel market in the autumn to ensure customers are paying a fair price for fuel across the UK.
