UK — The Competition and Markets Authority raised concerns about passive pricing strategies used by the majority of retailers in the UK fuel market. The regulator stated that these strategies were helping to keep profit margins high at the expense of motorists.

According to the agency, retailer profit margins were either at or above the historically high levels of 2025. Drivers paid nearly £1bn more for fuel at supermarkets during the previous year because of increased margins. The regulator also found that some retailers did not immediately pass on falls in wholesale diesel prices to drivers between May and June.

Sarah Cardell, chief executive of the Competition and Markets Authority, addressed the situation in an official statement. "We know prices at the pump are putting real pressure on drivers’ pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East," Cardell said. She added that the agency would continue to monitor prices and margins closely.

"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," Cardell said. The regulator noted it did not find any evidence of profiteering among fuel retailers on the back of the war in Iran. However, the agency had previously found competition among retailers had weakened since 2019.

Edmund King, president of the AA, commented on the disparity in retailer behavior. "Clearly, some fuel retailers are prepared to pass on lower costs promptly and help their customers," King said. "But many more, including large numbers of supermarkets, are not." Simon Williams, head of policy at the RAC, expressed concern over the sustained high margins and lack of competition.

"It’s very concerning that margins on fuel remain historically high, competition is still lacking and that some retailers were deemed not to have reduced prices as quickly as they should have when the diesel wholesale price fell earlier in the summer, Williams said. He welcomed the regulator's intention to investigate further. We’re therefore pleased the CMA is going to be taking a closer look at retailer pricing strategies and whether wholesale price changes are reflected at the pumps fast enough, he said."

Williams also urged the watchdog to compare fuel retailing in Northern Ireland with the rest of the UK. We also urge the watchdog to compare fuel retailing in Northern Ireland with the rest of the UK, as petrol and diesel are currently being sold there for an average of 8p less a litre – meaning the cost of filling a family car in Northern Ireland is around £4.40 less than elsewhere," he said. He concluded that if fuel can be sold at lower prices in one region, drivers elsewhere may not be treated fairly."

The Competition and Markets Authority will carry out a more detailed review of the road fuel market in the autumn. In the meantime, the regulator pointed to the Fuel Finder scheme, which was created on the back of a recommendation in July 2023. The scheme is run by the government and the technology company VE3. Approximately 97% of petrol stations in the UK are registered with the platform, accounting for approximately 99% of the fuel sold in the country.

The regulator sent 1,166 letters to retailers regarding failure to register with the scheme and issued 53 compliance notices since April. No fines have been issued related to registration failures. She noted that the tool could assist consumers while the review proceeds. "In the meantime, Fuel Finder can help drivers save money when they fill up," she said.