CMA Finds No Widespread Fuel Price Gouging Amid Record Pump Prices

TL;DR: The CMA reports that average fuel retailer margins were unchanged from February to March, even as pump prices hit record highs.

Context The UK fuel market has been under intense scrutiny since the Middle East conflict drove wholesale oil costs sky‑high. Prime Minister Sir Keir Starmer warned of possible rip‑offs, while forecourt operators denied any gouging. The Competition and Markets Authority (CMA) stepped up monitoring in March, promising to act if retailers abused the surge.

Key Facts - Average profit margins – the gap between wholesale cost and retail price – remained broadly unchanged between February and March, matching the 10.7 pence per litre (ppl) average of the previous year. - Two supermarkets and three independent retailers did see a margin rise, prompting a deeper probe slated for May. - Pump prices peaked in mid‑April at 158.3 pence per litre for petrol and 191.5 pence per litre for diesel, according to RAC data. - Since the peak, prices have eased but remain 24.2 ppl for petrol and 46.0 ppl for diesel above pre‑conflict levels. - The AA reports “rocket‑and‑feather” pricing – rapid price hikes when wholesale costs rise, followed by slower declines – continues, alongside a postcode‑lottery effect that can save drivers up to £9 per tank if they shop around. - Wholesale diesel costs have fallen faster than pump prices, while motorway petrol can be up to 20 ppl more expensive than on A‑roads.

What It Means The CMA’s findings suggest that, despite headline‑grabbing pump prices, retailers are not broadly inflating margins to exploit consumers. However, the presence of higher margins at specific chains and persistent regional price gaps indicates pockets of market power. The regulator’s vigilance will focus on whether falling wholesale costs translate into lower pump prices and on curbing “rocket‑and‑feather” dynamics that disadvantage drivers.

Looking Ahead Watch for the CMA’s May report on the margin spikes at the identified retailers and any policy steps aimed at reducing postcode‑based price disparities.