The rapid hike 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, the Competition and Markets Authority (CMA) has found.
CMA has also commenced enforcement activities and firms that fail to register with Fuel Finder or to submit accurate and up-to-date pricing information risk fines. The group sent warning letters to hundreds of forecourts last week that have yet to sign up to the scheme.
In its Enhanced road fuel monitoring report: May 2026, CMA 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 claimed it was 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.”
The Petrol Retailers Association (PRA), which represents independent fuel retailers, supermarkets and motorway service area operators across the UK, was glad to learn of the report’s conclusions.the competition and
PRA Executive Director Gordon Balmer said:
“We welcome the report’s findings that there has not been a widespread issue of retailers earning higher margins since the beginning of the conflict in the Middle East. Figures from the report show retail margins were on par with 2025 averages and the biggest driver of pump price has been the price of crude oil.”
He added: “Whilst the report notes higher margins, it should be noted that retail margins have remained higher due to increases in operating costs such as business rates rising by 29% for the average forecourt, increases in national living wage, high energy costs and an increase in fuel theft and crime. All of these costs have to be factored into operating expenses which are inevitably reflected at the pump for consumers.
“Since the start of the conflict the Treasury has pocketed extra revenue from VAT in fuel sales. We have urged the Chancellor to protect motorists by cancelling planned fuel duty increases and encourage her to introduce temporary measures to cut tax on fuel like Spain, Poland, Germany, France, Italy, Ireland and Australia ”
“The PRA continues to engage with DESNZ [the Department for Energy Security and Net Zero] and the CMA, as well as industry stakeholders to ensure greater transparency in fuel pricing and to support both retailers and motorists. For motorists looking for the best prices we encourage them to shop around using the petrolprices.com app.”
In March, Chancellor Rachel Reeves announced she was bringing in a new anti-profiteering framework to detect and crack down on price gouging. Earlier that month, the Association of Convenience Stores had defended forecourt retailers at a roundtable with the Chancellor and Energy Secretary Ed Miliband in Downing St, explaining to the Government that prices at the pumps were a result of wholesale price volatility, not profiteering by businesses.
ACS chief executive Ed Woodall said: “The rise in wholesale fuel prices is impacting every forecourt retailer, motorist and household in the UK. This is result of the conflict with Iran, not fuel retailers choosing to increase pump prices.”
