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Fuel Prices: No Widespread Gouging Found by Watchdog
1 May
Summary
- Watchdog found no widespread price gouging by UK fuel retailers.
- Profit margins remained broadly unchanged from February to March.
- Investigating why margins increased for some retailers.
The Competition and Markets Authority (CMA) has reported that there is no indication of widespread price gouging by UK fuel retailers. The watchdog's analysis revealed that profit margins were largely consistent between February and March. This finding comes after the CMA intensified its monitoring of fuel prices due to a spike in wholesale costs following the US-Israel conflict.
While most retailers maintained stable margins, the CMA noted an increase for two supermarkets and three other retailers. These specific cases are under further investigation, with results expected in May. The regulator also highlighted that current margins remain historically high, signaling a persistent issue with competition in the fuel retail market.
The CMA attributed the overall rise in fuel costs to external pressures, primarily increased oil prices. Global energy prices soared as the Strait of Hormuz, a crucial shipping route, faced disruption. The CMA remains vigilant, ensuring that any future decreases in wholesale costs are passed on to consumers at the pump.
