The Competition and Markets Authority has published its latest road fuel monitoring report, raising fresh concerns over a severe lack of active competition in the retail fuel sector. Evaluating the impact of the Middle East conflict on pump prices through April 2026, the regulator found that while geopolitical tension and elevated wholesale costs initially drove price hikes, a deeper underlying issue remains: retailers are refusing to actively compete on price, keeping average margins at a historically high 11.3 pence per liter.
The watchdog’s analysis found no evidence that fuel stations explicitly altered their pricing strategies to exploit the geopolitical crisis. However, the CMA remains highly concerned that even as wholesale prices stabilized and supply inventories improved in April, retail prices failed to drop accordingly. The report attributes this stagnation to a continuation of the weak competitive dynamics first identified in the CMA’s 2023 market study, with fuel stations relying on passive pricing policies that simply align with local competitors rather than undercutting them to win customers.
To counter this stagnant marketplace, the regulator is leaning heavily on consumer transparency to force a competitive response. Motorists are being urged to break local pricing alignment by using navigation apps and comparison websites backed by the government’s Fuel Finder scheme. By shopping around, drivers can save up to £9 per tank, a consumer shift that the CMA notes will naturally drive down broader market prices by penalizing non-competitive retailers.
Sarah Cardell, Chief Executive of the CMA, warned that the regulator will be keeping a close eye on whether improved supply conditions are reflected in lower prices over the coming weeks. Marking three years since its original market study, the CMA will now bypass passive observation and engage directly with retailers for a deep-dive assessment of their pricing strategies. Following a standard market update in August, the results of this detailed competition review will be published in Autumn 2026 to measure the definitive impact of the Fuel Finder scheme on market dynamics.
