𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Soaring fuel prices amid the conflict in the Middle East are being driven by the higher cost of oil rather than retailers increasing margins, an investigation has found.

The Competition and Markets Authority (CMA) said the difference between the price retailers pay for fuel and the price they sell it at – known as fuel margins – have been “broadly unchanged” since the start of the war on February 28.

The watchdog did discover increased fuel margins in March “for a minority of retailers” and committed to investigate these.

It also noted that fuel margins in March were close to or equal the average of 107p per litre seen last year, which shows they remain at “historically high levels” reflecting “ongoing concern about a lack of competitive pressure”.

Oil prices – which have a significant effect on the cost of wholesale fuel – hit their highest level since 2022 on Thursday amid reports US President Donald Trump could escalate the Iran war.

The cost of a barrel of Brent crude soared past 126 dollars (£94) at one stage, before dropping back.

Iran’s restrictions on tankers passing through the Strait of Hormuz means the average price of a litre of petrol and diesel at UK forecourts is 24p and 47p respectively more expensive than before the conflict started.

The CMA said “significant local price variations” mean there are potential savings of up to £9 for a tank of petrol or diesel “if drivers shop around”.

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.”