The Competition and Markets Authority (CMA) has expressed concerns that some petrol stations are not adequately passing on changes in wholesale fuel prices to drivers. In its latest quarterly update on the fuel market, the watchdog highlighted "passive pricing strategies" used by the majority of retailers, which it believes are contributing to high profit margins.
The CMA noted that some retailers did not promptly reduce prices for drivers when wholesale diesel prices fell between May and June. While overall costs at fuel pumps decreased in June, prices remain significantly higher than before the Middle East conflict, and retailer profit margins are at or above 2025 levels.
The watchdog also revealed it has sent 1,166 letters to retailers and 53 compliance notices since April for failing to register with the government-run Fuel Finder price comparison scheme. Despite this, approximately 97% of petrol stations, accounting for about 99% of fuel sold in the UK, are registered with the service. No fines have been issued yet.
Sarah Cardell, the CMA's chief executive, stated that the body will continue to monitor prices and margins closely, expecting wholesale price reductions to be passed on rapidly and fully. The CMA plans a more detailed review of the road fuel market in the autumn to ensure fair pricing for customers across the UK.