The UK competition watchdog has revealed that some petrol stations are still not passing on changes in wholesale prices quickly enough to drivers at the pumps. More than a thousand letters have been sent to retailers for failing to give prices to the Fuel Finder service, the Competition and Markets Authority (CMA) said.
Watchdog raises concerns over 'passive pricing strategies'
The CMA raised concerns over 'passive pricing strategies' used by most retailers, which it said was helping keep profits high. Fuel costs in the UK have soared since the start of the Iran war after the Strait of Hormuz, where around a fifth of the world's oil supply passes through, was effectively cut off.
The pressure on drivers' pockets has been high, but the CMA found some pumps did not immediately pass on falls in wholesale diesel prices to drivers between May and June. In its latest quarterly update, the CMA said that while costs overall fell at fuel pumps in June, prices remained significantly higher than before the Middle East conflict.
Retailer profit margins remain high
It added that retailer profit margins were either at or above the historically high levels seen in 2025. The watchdog said an immediate drop in prices could have boosted competition in the market. Despite this, it did not find any evidence of profiteering among fuel retailers on the back of the war in Iran.
The watchdog revealed it has sent 1,166 letters to retailers and 53 compliance notices since April about failures to register with the Government-run Fuel Finder price comparison scheme. It said around 97% of petrol stations are now registered with the scheme, which account for about 99% of fuel sold in the UK. The CMA added that it has not issued any fines.
CMA chief executive pledges continued monitoring
The chief executive of the CMA, Sarah Cardell, said the organisation will continue to check prices into the autumn. Cardell said: "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."
"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. In the meantime, Fuel Finder can help drivers save money when they fill up."
AA highlights unfair pricing at some forecourts
The AA said the CMA's update "once again highlights some failures to not charge a fair price for petrol and diesel – at the expense of everyday drivers". Edmund King, the AA's president, said: "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."
The AA added that some forecourts were charging petrol at 10p a litre less than close rivals, while average prices are not reflecting falls seen at the end of last month. King said: "A 10p-a-litre crash in wholesale petrol in late July/early August has barely registered at the pump, with the UK average price trickling down a mere 0.4p a litre in seven days to the current 161.2p UK average. Wholesale petrol costs have rebounded since then but still remain 1p to 2p a litre lower than the peaks in mid to late July."
