Petrol Stations Put on Notice as CMA Steps Up Scrutiny
The Competition and Markets Authority (CMA) has put petrol stations and fuel retailers on notice and will require firms to provide revenue, costs and sales data as it accelerates a review of industry margins. This move launches closer monitoring of pump prices after a recent spike in wholesale oil costs tied to the US–Iran conflict.
CMA and Petrol Stations
The CMA said it would analyse how quickly fuel prices rose and fell as wholesale costs changed and would call out any concerning behaviour, with executive director Juliette Enser stressing that price increases must reflect genuine cost pressures. The pattern suggests regulators are shifting from routine surveillance to active data gathering to detect rapid price rises that are not matched by later cuts.
PRA and Gordon Balmer
The Petrol Retailers’ Association (PRA) and its executive director Gordon Balmer say some forecourts are “losing money” on diesel sales because buying contracts can lag market costs by days, while wholesale prices surged. Mr Balmer warned the wholesale price rose by up to 25p per litre at one stage last week and noted that 20% of Europe’s diesel flows through the Strait of Hormuz, which has been disrupted; these specifics point to contract timing and supply-route disruption as drivers of temporary retailer losses.
RAC and Price Figures
Retail prices have already moved: RAC figures show the average petrol price rose by 5. 5% (about 7p a litre) since strikes on Iranian targets began, and the average diesel price climbed 11. 1% (nearly 16p). The oil price also passed $100 (£75) a barrel amid Iranian attacks on energy facilities and threats to the Strait of Hormuz, and those numbers indicate immediate inflationary pressure that could influence Bank of England policy and consumer costs.
Yet the government has signalled a firm response: Rachel Reeves warned she would not tolerate firms exploiting the crisis to make excess profits, and ministers are expected to hold talks with fuel industry bosses and energy companies alongside energy secretary Ed Miliband. The figures point to political as well as regulatory pressure on retailers to explain margins and pricing decisions.
Industry measures and transparency also matter for drivers. A minority of fuel retailers do not supply real-time data to the government’s fuel finder scheme, and the CMA said it recognises firms face significant cost pressures but will examine whether prices show so-called “rocket and feather” behaviour. The presence of unreported forecourts and the watchdog’s data demand underline why regulators want firm-level sales and cost records to distinguish legitimate margin compression from opportunistic price moves.
Supply-side actions are also in play: Mr Balmer expressed hope that an International Energy Agency release of reserves, expected later on Wednesday, could help offset lost flows through the Strait of Hormuz, though he cautioned that a return to normal supplies could take weeks because of production restarts and long delivery times from the Middle East. The details suggest temporary relief from strategic stock releases, not an immediate reversal of wholesale pressure.
For now, the confirmed next step is a set of meetings and a data request: the chancellor is expected to meet fuel industry bosses with Ed Miliband and the CMA will require revenue, costs and sales data as it accelerates its margin review. If the CMA finds evidence of rapid price rises followed by slower cuts, the data suggests the watchdog will report publicly and call out firms for concerning behaviour, potentially prompting further government action.
