Chancellor Rachel Reeves to Unveil Anti-Profiteering Plan Amid Middle East Crisis
Chancellor Rachel Reeves is set to announce a comprehensive plan aimed at shielding British consumers from unfair price rises triggered by the escalating Middle East crisis. The measures will be outlined in a statement to Members of Parliament on Tuesday, following an emergency Cobra meeting held on Monday afternoon.
Emergency Cobra Meeting Precedes Parliamentary Statement
Downing Street confirmed that Reeves presented her proposed actions to Prime Minister Sir Keir Starmer and other senior colleagues during the urgent Cobra session. The Chancellor set out the steps she will take tomorrow – in a statement to Parliament – that will help protect working people from unfair price rises, a government readout stated.
The plan includes the establishment of an anti-profiteering framework designed to detect and crack down on companies exploiting the geopolitical turmoil. This framework will empower the Competition and Markets Authority (CMA) to root out price gouging more effectively across various sectors.
Sir Keir Starmer Calls for Stronger Regulatory Powers
The announcement comes after Prime Minister Sir Keir Starmer highlighted concerns over surging oil and fuel costs, suggesting the need to bolster the CMA's authority. Earlier on Monday, Starmer indicated he was examining options to give the regulator further teeth to protect consumers, emphasizing that the government must bear down on profiteering.
This could involve granting regulators time-limited, targeted powers to address specific crises. The Treasury, Department for Business and Trade, and regulatory bodies are working at pace to define these enhanced capabilities.
Government Vows to Combat Exploitative Pricing
A government spokesperson affirmed the administration's commitment: We are fighting your corner to keep the cost of living down in these uncertain times. 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.
Sir Keir has downplayed the prospect of fuel rationing, stating there are no meaningful concerns about energy supplies, though he acknowledged daily price fluctuations during a Liaison Committee session with MPs.
Fuel Prices Reach Alarming Highs Amid Conflict
Latest figures reveal diesel prices have hit a three-year high due to the ongoing Iran conflict. According to the RAC, the average price of unleaded fuel has surged more than 14p per litre to 147.19p since late February, adding approximately £8 to the cost of filling a family car, which now stands at £81.
Petrol prices are at their highest since early June 2024, while diesel has risen 29p per litre to 171.17p, its peak since mid-January 2023. This increase means a diesel tank now costs £94, £16 more than at the start of the Middle East tensions.
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 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.
Lord Walker Advocates for Temporary Profit Caps
Lord Richard Walker, the government's cost-of-living tsar, has called for short-term interventions to prevent energy companies and petrol retailers from excessively benefiting from the Middle East conflict. In a Sunday Times article, he proposed a temporary profit cap to stop producers and retailers exploiting the crisis to make windfall profits at the expense of consumers.
Sir Keir responded that he plans to discuss these proposals urgently with Lord Walker, reiterating the focus on anti-profiteering measures. I've already asked the CMA to look at this, 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, the Prime Minister stated.
Fuel Supply Remains Stable Despite Price Hikes
The AA reported strong fuel stocks across the UK on Monday, with no significant spike in breakdowns due to fuel shortages or supply concerns during patrols. 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.
Disruptions to petrol supplies have been linked to Iran's control over oil tankers passing through the Strait of Hormuz, a critical international shipping route. The geopolitical stranglehold has exacerbated market volatility, prompting the government's swift regulatory response.
