Key facts
- The UK Competition and Markets Authority (CMA) stated some petrol stations are not passing on wholesale price changes quickly enough.
- Over 1,000 warning letters were sent to retailers for failing to provide prices to the Fuel Finder service.
- The CMA cited "passive pricing strategies" that keep profit margins high.
- Between May and June, some retailers did not immediately pass on falls in wholesale diesel prices.
- Retailer profit margins are at or above historically high levels seen in 2025.
- The CMA will conduct a more detailed review of the road fuel market in the autumn.
The UK's Competition and Markets Authority (CMA) has expressed concerns that fuel retailers are not passing on decreases in wholesale prices quickly enough to consumers, contributing to persistently high profit margins. In its latest quarterly update on the fuel market, the watchdog highlighted "passive pricing strategies" employed by most retailers.
The CMA found that between May and June, some retailers failed to immediately reduce prices when wholesale diesel costs fell, a move that could have stimulated market competition. While overall prices at the pump decreased in June, they remained significantly elevated compared to pre-conflict levels, with retailer profit margins either matching or exceeding the historically high levels observed in 2025. The authority stated it found no evidence of profiteering linked to the conflict in the Middle East.
Furthermore, the CMA revealed it has issued 1,166 warning letters and 53 compliance notices since April to retailers for not registering with the government-run Fuel Finder price comparison scheme. Approximately 97% of petrol stations, accounting for about 99% of UK fuel sales, are registered. The CMA plans a more in-depth review of the road fuel market this autumn to ensure fair pricing.
CMA Chief Executive Sarah Cardell acknowledged the financial pressure on drivers and emphasized the watchdog's role in ensuring retailers do not exploit the situation. She stated, "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." The AA and RAC echoed these concerns, with the AA President Edmund King noting that while some retailers promptly pass on lower costs, many, including supermarkets, do not. The RAC's Head of Policy, Simon Williams, called for a closer look at pricing strategies and urged a comparison of fuel prices in Northern Ireland, where they are notably lower, to the rest of the UK.
The Fuel Finder system, established following a CMA recommendation in July 2023, aims to help drivers save money. The CMA had previously identified weakened competition among retailers since 2019, leading to drivers paying nearly £1 billion more in the preceding year due to increased margins at supermarkets.