petrol stations across the UK have been “put on notice” as the Competition and Markets Authority steps up monitoring of pump prices after wholesale costs surged amid the US war with Iran. The CMA will require detailed revenue, cost and sales data from major retailers and accelerate its review of fuel industry margins. The move follows sharp increases in petrol and diesel prices and government warnings that excess profits will not be tolerated.
Petrol Stations under watchdog scrutiny
The CMA flagged that firms running thousands of filling sites will need to provide revenue, costs and sales data to allow faster analysis of margins. The regulator said it will test whether price moves show so-called “rocket and feather” behaviour — rapid increases followed by slower decreases — and will call out any concerning behaviour. The CMA acknowledged businesses face significant pressures from rising energy costs but emphasised that price rises must reflect genuine cost pressures.
Immediate reactions from industry and officials
Chancellor Rachel Reeves warned the sector it would not be allowed to exploit the crisis and said she would ask the CMA to step up vigilance. Energy secretary Ed Miliband is expected to join meetings with fuel industry bosses and the chancellor to press for fair outcomes for drivers and households. Juliette Enser, executive director for markets at the Competition and Markets Authority, said: “While price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures. We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour. “
From the industry, Gordon Balmer, executive director of the Petrol Retailers’ Association, said some operators are “losing money” on diesel because buying contracts can include multi-day lags that prevent forecourts keeping pace with sudden wholesale spikes. He warned of tight supply and busy forecourts: “It’s very busy out there… supply of fuel is tight and forecourts remain busy. ” Mr Balmer also noted the wholesale price rose by “(up to) 25p per litre at one stage last week” and expressed hope that an expected International Energy Agency release of reserves could ease pressure.
Quick context
Oil prices have climbed past $100 a barrel and petrol and diesel costs have risen sharply, with figures showing average petrol up around 5. 5% and diesel up about 11. 1% since US and Israeli air strikes began almost two weeks ago. The CMA had already expressed deep concern late last year about signs of overcharging at the pumps.
What’s next
The CMA will analyse how quickly retail prices respond to wholesale moves and report on its findings, while the chancellor will meet retailers and the CMA to press for transparency and fair pricing. The industry says it aims to balance margins over time, but the watchdog’s faster review and mandatory data requests put immediate scrutiny on how prices at petrol stations are set and adjusted.
As monitoring continues and government meetings proceed (times noted in official schedules in ET), the CMA’s scrutiny is likely to determine whether further action will be taken to protect consumers at petrol stations.
