- Analysis finds that, on average, retailer fuel margins were
broadly unchanged in March
- Local variation in prices remains high – drivers encouraged
to shop around to save up to £9 a tank
- Lack of effective competitive pressure in fuel market remains
a concern, with fuel margins still above historic levels
The rapid increase in fuel prices caused by the Middle East
crisis has been driven by wider cost pressures, in particular
higher oil prices, rather than a general increase in fuel margins
by fuel retailers, the Competition and Markets Authority (CMA)
has found in its monitoring report.
Analysis of the difference between the price retailers pay for
fuel and the price they sell it at – known as fuel margins –
since the start of the conflict shows that on average they were
broadly unchanged between February and March, and were similar to
the average margins throughout 2025.
For a minority of retailers, the CMA observed some increases in
fuel margins during March. The CMA is not yet in a position to
determine the precise drivers of these increased margins because
it received the financial information from retailers at the end
of April. It will now investigate this further for the May report
along with margin data for April.
Key findings
- Prices for petrol and diesel rapidly increased by 26 and 50
pence per litre (ppl) respectively between February and the 20th
April.
- On average, retail fuel margins across the whole market were
broadly unchanged between February and March at 10.3ppl and
10.7ppl respectively and were close or equal to the average
margin in 2025 of 10.7ppl. However, the CMA has observed
some instances of individual retailer margins having increased
between February and March. The CMA is investigating the reasons
for these increases and will include an update in the May report.
- There was also a period of higher margins prior to the
conflict in December 2025 and January 2026 at 12.7ppl compared to
10.0ppl in November 2025. The CMA is investigating further what
has driven this increase.
- Significant local price variations mean there are potential
savings of up to £9 to be made on a tank of petrol or diesel if
drivers shop around, including by using new apps or websites
drawing from Fuel Finder data.
- Fuel margins remain at historically high levels reflecting
ongoing concern about a lack of competitive pressure in the fuel
retail market.
Sarah Cardell, Chief Executive at the CMA, said:
The conflict in the Middle East has driven sharp increases in
road fuel prices, putting real pressure on households and
businesses across the UK. The CMA's job is to ensure these rises
reflect genuine cost pressures — especially given our previous
work showing competition among fuel retailers isn't as strong as
it should be.
That's why we've stepped up our monitoring. This scrutiny is
working: on average, retailer fuel margins did not increase. We
will remain vigilant to ensure any fall in costs is passed on
quickly to motorists.
Some individual retailers' margins did rise in March. We are
investigating why and will report further in May.
Today's report also shows the value of shopping around, with
drivers able to save up to £9 per tank by doing so. This is why
the CMA recommended a Fuel Finder scheme which the Government has
now introduced. For it to deliver for motorists, all retailers
must register and provide accurate data — and we will take
enforcement action where they do not.
Fuel Finder
The introduction of the Fuel Finder scheme, as recommended by the
CMA, will significantly enhance drivers' ability to shop around,
strengthening competition in the retail fuel market. While Fuel
Finder has only recently been introduced, it is already being
used by a range of third parties. Once Fuel Finder is established
and more widely used by third party apps, it will make it easier
for drivers to shop around for the cheapest fuel and, as result,
the CMA would expect competitive pressure on retail prices and
margins to increase.
Retailers have been put on notice that the CMA will commence
enforcement activities from today and firms that fail to register
with Fuel Finder or to submit accurate and up-to-date pricing
information risk fines. As a first step, the CMA has this week
sent warning letters to hundreds of forecourts that have yet to
sign up to the scheme.
Notes to editors
- The CMA's margin analysis is based on fuel revenue, costs,
and volumes data for some of the largest firms - representing
approximately 40% of petrol stations across the country.
- Unlike other research about fuel prices, the CMA has access
to confidential information from fuel retailers, enabling it to
conduct this analysis. It expects these findings to reflect wider
trends in the market.
