Chancellor to Announce Anti-Profiteering Framework in Parliament Statement
Chancellor of the Exchequer Rachel Reeves is set to deliver a statement to MPs on Tuesday, detailing concrete steps to shield the public from what she terms "unfair price rises." This announcement follows an emergency Cobra meeting held on Monday afternoon, where Reeves briefed Prime Minister Sir Keir Starmer and senior colleagues on her proposed actions.
The Chancellor's intervention comes amid mounting concerns over profiteering by companies exploiting the ongoing Middle East crisis, which has triggered a sharp surge in oil and fuel prices. Downing Street confirmed that Reeves will present an "anti-profiteering framework" designed to detect and crack down on such practices, while empowering the Competition and Markets Authority (CMA) to root out price gouging more effectively.
Government Vows to Protect Consumers from Exploitation
A Government spokesperson emphasised the administration's commitment to keeping the cost of living manageable during these uncertain times. "We are fighting your corner to keep the cost of living down," the spokesperson stated. "We will not allow companies to exploit this crisis to hike their prices to unjustifiable levels. Whether at the fuel pump filling up your car or at the till paying for your groceries, we are working with regulators to make sure the price you pay is a fair one."
Prime Minister Sir Keir Starmer has previously indicated that the Government is actively considering granting the CMA "further teeth" to better protect consumers. He acknowledged that current regulations in this area are insufficient and stressed the need to "bear down" on profiteering. This could involve providing regulators with "time-limited, targeted powers" to address specific crises. The Treasury and the Department for Business and Trade are collaborating with regulators at pace to define these potential new authorities.
Fuel Prices Reach Alarming Highs
The urgency of the situation is underscored by the latest fuel price data. According to the RAC, the average price of unleaded petrol has increased by over 14p per litre since late February, now standing at 147.19p. This adds approximately £8 to the cost of filling a typical family car, bringing the total to around £81. Petrol prices have not been this high since early June 2024.
For diesel vehicle owners, the situation is described as "far worse." A litre of diesel has surged by 29p to 171.17p, marking its highest price since mid-January 2023. Consequently, filling a diesel tank now costs about £94, which is £16 more than at the onset of the Middle East conflict.
RAC head of policy Simon Williams warned, "Given how many rely on their cars, households are really feeling the effects of the conflict in the Middle East. As a barrel of oil has been trading well over 100 dollars for the last three days and looks set to remain at that level, drivers are in for a rough ride at the pumps in the run-up to the Easter break with no end to price increases in sight." He predicted that petrol could exceed 150p per litre soon, with diesel approaching 180p, potentially making this the most expensive Easter on the roads since the early stages of the Ukraine war in 2022.
Calls for Temporary Profit Caps and Supply Assurance
The debate over profiteering has been fuelled by calls from Lord Richard Walker, the Government's cost-of-living tsar. In a Sunday Times article, Lord Walker advocated for short-term interventions, including a temporary profit cap, to prevent energy companies and petrol retailers from making excessive windfall profits at consumers' expense during the crisis.
Prime Minister Starmer confirmed he had discussed these proposals urgently with Lord Walker, reiterating the Government's focus on measures to combat profiteering. "I've already asked the CMA to look at this," Starmer said. "I think we might look at what further teeth we can give the CMA to deal with this. I think there isn't enough regulation in this area. I want to see more on price gouging or profiteering."
Despite the price spikes, the AA reported on Monday that fuel stocks across the UK remain strong, with no significant increase in breakdowns due to empty tanks or supply concerns. AA president Edmund King advised, "The AA advises that drivers should continue to fill up as normal and can use sites such as The AA App to find the best prices." Starmer also downplayed the prospect of fuel rationing, noting no "meaningful concerns about energy supplies," though he acknowledged daily price fluctuations.
