Report assesses impact of the conflict in the Middle East on fuel prices and margins until the end of April 2026.
- No evidence that retailers altered their pricing strategies to take advantage of the crisis
- Lack of effective competition remains a concern, and CMA will examine whether improved supply conditions are reflected in lower retail prices over the coming weeks
- Savings of up to £9 per tank possible if drivers shop around - the more motorists make use of Fuel Finder-backed services, the better it works
The Competition and Markets Authority (CMA) has published its latest road fuel monitoring report , setting out how the conflict in the Middle East has affected what drivers pay at the pump. It has also assessed fuel margins - the difference between the price petrol stations pay for fuel and the price they sell it at.
In its previous report , the CMA found that the conflict in the Middle East caused a rapid increase in both the wholesale price for fuel and prices at the pump. While margins in March were similar to 2025, a small number of retailers saw their margins increase. The CMA committed to examine this further and has set out findings in today's report.
Today's report
Overall, the CMA's analysis indicates that elevated wholesale prices continue to explain most of the increase in pump prices in March and into April and it has not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis.
Alongside wholesale price increases, a range of factors particular to the current crisis may be reducing retailers' incentives to offer lower prices, including wholesale price volatility, supply constraints and increases in demand.
The CMA's investigations also indicate that, where certain individual retailers have increased margins in March, this is due in part to retailers following competitors' price increases and setting prices to mitigate supply constraints and inventory pressures, alongside differences in their purchasing costs.
However, it also notes that throughout this period, average fuel margins for both supermarket and non-supermarket retailers remained at historically high levels and, in a number of cases, individual retailer margins increased slightly in April - bringing the average to 11.3 ppl. This is the case even though inventory levels and wholesale costs have stabilised to some extent in April.
The CMA therefore remains concerned that sustained high retail margins reflect a continuation of the weak competitive dynamics identified during its 2023 market study, with retailers continuing with largely passive pricing policies - aligning to local market pricing by competitors - rather than actively competing to win customers.
Given the improvements to supply conditions seen in April - in particular improved inventory levels and with wholesale prices no longer increasing - the CMA would be concerned if current high retail prices persist. It will therefore be paying close attention to whether improved supply conditions are reflected in retail prices.
Fuel Finder
Fuel Finder can help increase competition between fuel retailers by making it easier for drivers to compare fuel prices. Drivers are encouraged to shop around using navigation apps and comparison websites, with potential savings of up to £9 per tank.
Sarah Cardell, Chief Executive of the CMA, said:
We know prices at the pump are putting real pressure on drivers' pockets. While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more.
Retailers should be in no doubt that we are continuing to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.
In the meantime, Fuel Finder can help drivers save up to £9 a tank. The more motorists make use of Fuel Finder-backed services, the better it works - saving money now and driving down prices in the long run.
Consistent with its market study, the CMA found supermarkets remained, on average, the cheapest places to buy fuel and lead the market on price. Meanwhile, motorway service stations were the most expensive and charged a substantial premium.
The CMA will publish its next update in August, considering market developments over a longer time period until the end of June - this will give a clearer picture of whether savings are being passed on.
As it is now 3 years since the CMA's original market study and given ongoing concerns about weak price competition in the sector, the CMA will now also engage directly with retailers as it conducts a more detailed assessment of their pricing strategies across the market. It expects to publish the results of that assessment in the autumn, to allow for an assessment of the impact of the introduction of the Fuel Finder scheme.
