LONDON, May 1, 2026 — The UK’s Competition and Markets Authority said rising road fuel prices following the conflict in the Middle East were primarily driven by higher wholesale costs rather than a broad increase in retailer margins, though it warned that competition concerns in the sector persist.
In its latest monitoring report on the road fuel market, the CMA said petrol and diesel prices rose sharply between February and April 20, increasing by 26 pence per litre and 50 pence per litre respectively.
The regulator found that average retail fuel margins — the difference between the price retailers pay for fuel and the price charged to motorists — were “broadly unchanged” between February and March, standing at 10.3 pence per litre and 10.7 pence per litre respectively. That level was also in line with the 2025 average.
However, the watchdog said it identified increases in margins among a minority of retailers and would investigate the reasons further in its May report.
“Some individual retailers’ margins did rise in March. We are investigating why and will report further in May,” CMA Chief Executive Sarah Cardell said in a statement.
The authority also noted that margins had already risen before the Middle East conflict, reaching 12.7 pence per litre in December 2025 and January 2026 compared with 10.0 pence in November.
Despite the broadly stable margin picture, the CMA said fuel retail margins remain “historically high,” reflecting ongoing concerns about weak competitive pressure in the market.
The report highlighted significant local price disparities, with motorists potentially able to save up to £9 per tank by shopping around using apps and websites linked to the government-backed Fuel Finder scheme.
The Fuel Finder system, introduced following earlier CMA recommendations, requires retailers to provide up-to-date fuel pricing data. The watchdog said it had begun enforcement activity against non-compliant operators, including sending warning letters to hundreds of forecourts that had not yet registered.
The CMA said it expects wider use of Fuel Finder data to strengthen competition and place downward pressure on prices over time.
Source: https://www.gov.uk/government/news/cma-publishes-latest-monitoring-report-on-road-fuel-market
