There is no evidence of widespread fuel price-gouging by UK retailers in the weeks after the US-Israel war with Iran began, the competition watchdog said on Friday (May 1).
In its monitoring report, CMA stated that 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.
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 stated that it 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.