CMA WARNS PETROL STATIONS SLOW TO CUT PRICES AFTER WHOLESALE FALLS

The Competition and Markets Authority has raised concerns that some petrol stations are not passing on reductions in wholesale prices quickly enough to drivers. The CMA identified "passive pricing strategies" used by the majority of retailers, which it said were helping to maintain high profit margins. The watchdog found that between May and June, some retailers did not immediately pass on falls in wholesale diesel prices to drivers, which could have increased market competition. The CMA has sent 1,166 warning letters to retailers and 53 compliance notices since April over failure to register with the Fuel Finder price comparison scheme.

The CMA reported that whilst overall fuel costs fell at pumps in June, prices remained significantly higher than before the Middle East conflict. Retailer profit margins were either at or above historically high levels recorded in 2025, according to the watchdog's assessment. Around 97 per cent of petrol stations are now registered with Fuel Finder, accounting for approximately 99 per cent of fuel sold in the UK. The CMA said it had not yet issued any fines and has not found evidence of profiteering among fuel retailers related to the Iran war.

The CMA's chief executive, Sarah Cardell, stated the watchdog expected reductions in wholesale prices to be "rapidly and fully passed on to drivers". The regulator will conduct a more detailed review of the road fuel market in autumn to ensure customers are paying fair prices. The AA said the CMA's update "once again highlights some failures to not charge a fair price for petrol and diesel – at the expense of everyday drivers", according to the organisation's president, Edmund King.