- No evidence that retailers altered their pricing strategies
to take advantage of the crisis
- Lack of effective competition remains a concern, and CMA
will examine whether improved supply conditions are reflected in
lower retail prices over the coming weeks
- Savings of up to £9 per tank possible if drivers shop
around – the more motorists make use of Fuel Finder-backed
services, the better it works
The Competition and Markets Authority (CMA) has published its
latest road fuel monitoring
report, setting out how the conflict in the Middle East has
affected what drivers pay at the pump. It has also assessed fuel
margins – the difference between the price petrol
stations pay for fuel and the price
they sell it at.
In its previous report,
the CMA found that the conflict in the Middle East caused a rapid
increase in both the wholesale price for fuel and prices at the
pump. While margins in March were similar to 2025, a small number
of retailers saw their margins increase. The CMA committed to
examine this further and has set out findings in today's report.
Today's report
Overall, the CMA's analysis indicates that elevated wholesale
prices continue to explain most of the increase in pump prices in
March and into April and it has not seen evidence of retailers
actively changing their pricing strategies to take advantage of
the crisis.
Alongside wholesale price increases, a range of factors
particular to the current crisis may be reducing retailers'
incentives to offer lower prices, including wholesale price
volatility, supply constraints and increases in demand.
The CMA's investigations also indicate that, where certain
individual retailers have increased margins in March, this is due
in part to retailers following competitors' price increases and
setting prices to mitigate supply constraints and inventory
pressures, alongside differences in their purchasing costs.
However, it also notes that throughout this period, average fuel
margins for both supermarket and non-supermarket retailers
remained at historically high levels and, in a number of cases,
individual retailer margins increased slightly in April –
bringing the average to 11.3 ppl. This is the case even though
inventory levels and wholesale costs have stabilised to some
extent in April.
The CMA therefore remains concerned that sustained high retail
margins reflect a continuation of the weak competitive dynamics
identified during its 2023 market study, with retailers
continuing with largely passive pricing policies – aligning to
local market pricing by competitors – rather than actively
competing to win customers.
Given the improvements to supply conditions seen in April – in
particular improved inventory levels and with wholesale prices no
longer increasing – the CMA would be concerned if current
high retail prices persist. It will therefore be paying close
attention to whether improved supply conditions are reflected in
retail prices.
Fuel Finder
Fuel Finder can
help increase competition between fuel retailers by making it
easier for drivers to compare fuel prices. Drivers are encouraged
to shop around using navigation apps and comparison websites,
with potential savings of up to £9 per tank.
Sarah Cardell, Chief Executive of the CMA, said:
We know prices at the pump are putting real pressure on drivers'
pockets. While our analysis shows the rise in wholesale prices is
the main reason for higher fuel prices, we remain concerned about
weak competition in the sector leaving drivers paying more.
Retailers should be in no doubt that we are continuing 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 up to £9 a
tank. The more motorists make use of Fuel Finder-backed services,
the better it works – saving money now and driving down prices in
the long run.
Consistent with its market study, the CMA found supermarkets
remained, on average, the cheapest places to buy fuel and lead
the market on price. Meanwhile, motorway service stations were
the most expensive and charged a substantial premium.
The CMA will publish its next update in August, considering
market developments over a longer time period until the end of
June – this will give a clearer picture of whether savings are
being passed on.
As it is now 3 years since the CMA's original market study and
given ongoing concerns about weak price competition in the
sector, the CMA will now also engage directly with retailers as
it conducts a more detailed assessment of their pricing
strategies across the market. It expects to publish the results
of that assessment in the autumn, to allow for an assessment of
the impact of the introduction of the Fuel Finder scheme.
