Fuel retailers not passing on savings to drivers, report states

Consumer Editor

4 minute read|19th Aug 2026

Some fuel retailers in the UK are not immediately passing on wholesale price reductions to drivers, according to a new Competition and Markets Authority (CMA) report.

The CMA says it has not found evidence of retailers actively changing their pricing strategies to take advantage of the crisis in the Middle East.

However, considering the relatively gradual pace of reduction of diesel prices when compared to wholesale costs and the continued high retail margins, the CMA is concerned that some retailers gained a competitive advantage when wholesale diesel costs fell but they delayed passing on these cost reductions to drivers.

RAC Fuel Watch is tracking how pump prices in the UK are being affected by the conflict in the Middle East. Since the conflict began on 28 February, the average cost of unleaded petrol has risen by 22.7p while the cost of diesel is 29.8p higher.

As a result of its findings, the CMA is launching a detailed review in the autumn.

It will provide further analysis on retailer’s pricing strategies – and if wholesale price changes for both petrol and diesel are reflected in the price paid at the pumps in a ‘timely manner’.

Sarah Cardell, Chief Executive of the CMA, said: “We know prices at the pump are putting real pressure on drivers’ pockets and our monitoring plays an important role in giving drivers confidence that retailers are not taking advantage of the conflict in the Middle East.

“We will continue to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.”

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RAC head of policy Simon Williams said: "It's very concerning that margins on fuel remain historically high, competition is still lacking and that some retailers were deemed not to have reduced prices as quickly as they should have when the diesel wholesale price fell earlier in the summer.

"We're therefore pleased the CMA is going to be taking a closer look at retailer pricing strategies and whether wholesale price changes are reflected at the pumps fast enough.

“We also urge the watchdog to compare fuel retailing in Northern Ireland with the rest of the UK, as petrol and diesel are currently being sold there for an average of 8p less a litre – meaning the cost of filling a family car in Northern Ireland is around £4.40 less than elsewhere.

“If fuel can be sold there at lower prices, then it seems drivers elsewhere aren't being treated fairly.

"It's positive that drivers can now find prices for 99% of fuel sold in the UK on Fuel Finder.

“We urge every driver to use fuel comparison tools such as the myRAC app to make sure they buy the cheapest fuel near them."

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