UK Competition and Markets Authority warns fuel retailers over pump prices

The UK Competition and Markets Authority (CMA) has warned fuel retailers that they are failing to pass on wholesale price reductions to motorists quickly enough. The regulator highlighted the use of “passive pricing strategies” by a majority of retailers, which allows profit margins to remain elevated even as underlying diesel and petrol costs decline.

While average pump prices fell slightly in June, they remain significantly higher than levels seen prior to recent Middle East energy shocks. The CMA noted that retailer margins are currently matching or exceeding record highs seen in 2025, though investigations found no direct evidence of profiteering linked to the conflict in Iran.

In addition to pricing concerns, the CMA has issued 1,166 warning letters and 53 compliance notices since April to businesses failing to participate in the government’s mandatory Fuel Finder scheme. This service provides live price data to help motorists compare costs. The regulator intends to conduct a more detailed review of the road fuel market this autumn.