UK fuel retailers too slow to pass on wholesale price falls, watchdog finds

The UK's Competition and Markets Authority (CMA) has warned that a large share of fuel retailers rely on so-called "passive pricing strategies", which help sustain high profit margins even as drivers face cost pressures stemming from the war in Iran.

In its latest quarterly fuel market update, the regulator found that some retailers failed to promptly pass on falling wholesale diesel prices between May and June, a delay that could have otherwise strengthened competition among fuel sellers.

Margins still above historic norms

While overall pump prices declined in June, they remained well above pre-conflict levels, and retailer margins stayed at or above the historically elevated levels seen in 2025. The CMA said it found no evidence that retailers were deliberately profiteering from the Middle East conflict.

Since April, the watchdog has issued 1,166 warning letters and 53 compliance notices to retailers that failed to register with the government-backed Fuel Finder price comparison scheme. About 97% of petrol stations, accounting for roughly 99% of fuel sold nationally, are now registered, and no fines have yet been issued.

CMA chief executive Sarah Cardell said the authority would keep closely monitoring prices and margins, expecting wholesale price cuts to be passed on to drivers quickly and in full. A more detailed review of the road fuel market is planned for autumn.

Motoring group the AA said many retailers, including major supermarkets, were slow to lower prices for customers, while the RAC voiced concern over weak competition and high margins, urging the CMA to compare pricing in Northern Ireland — where fuel is on average 8p per litre cheaper than in the rest of the UK — with the rest of the country.