Britain’s competition watchdog has warned fuel retailers that wholesale price falls are not being passed through to motorists quickly enough, as it steps up scrutiny of petrol and diesel prices following the latest Middle East energy shock.
The Competition and Markets Authority said some retailers had failed to reduce pump prices promptly when wholesale diesel costs fell between May and June. It raised particular concerns over “passive pricing strategies” used by a majority of retailers, which can allow margins to remain elevated even as underlying costs decline.
Although average pump prices fell in June, the CMA said they remained significantly above levels recorded before the conflict in the Middle East. Retailer margins were also either at or above the historically high levels recorded in 2025.
The regulator stressed, however, that it had found no evidence of profiteering by fuel retailers as a result of the war in Iran.
The findings come as pressure mounts on retailers to make greater use of the government’s Fuel Finder scheme, which allows motorists to compare prices at nearby forecourts.
Since April, the CMA has sent 1,166 warning letters and issued 53 compliance notices to retailers that had failed to register with the service. Around 97 per cent of UK petrol stations are now registered, representing about 99 per cent of fuel sold nationally.
No fines have yet been imposed.
Sarah Cardell, CMA chief executive, said pump prices were putting “real pressure” on drivers and that the regulator expected reductions in wholesale costs to be “rapidly and fully passed on”.
The AA said the latest findings highlighted failures by some retailers to charge a fair price, with president Edmund King accusing many supermarkets and other operators of being slow to reduce prices.
The CMA plans a more detailed review of the road fuel market in the autumn, potentially increasing pressure on retailers if margins remain elevated.
For motorists, the dispute highlights a persistent problem in Britain’s fuel market: wholesale prices can fall quickly, while the benefits at the pump often arrive more slowly.
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