Chancellor of the Exchequer Rachel Reeves has announced she is to introduce a new “anti-profiteering framework” via the Competition and Markets Authority to crack down on “price gouging”.
Speaking in the House of Commons today, Reeves said she will “update on fuel pricing within the next month”, before adding that the government will ”make sure that the Competitions and Markets Authority has the powers that they need to detect and crack down on price gouging, bringing in a new anti-profiteering framework”.
She added: ”This government will not tolerate any companies exploiting this crisis at consumers’ expense”.
With little ability to control the situation in the Middle East and an unwillingness to reduce VAT and fuel duty takes on petrol and diesel, ministers are instead doubling down on their criticism of fuel retailers and energy firms.
Over the weekend the government’s ‘cost of living champion’, Baron Walker of Broxton, said the government had “hauled petrol retailers and energy producers into Downing Street” to “given them a shot across the bows – a warning that opportunistic rip-offs will not be tolerated”.
Lord Walker’s comments and those of the Chancellor follow similar ones made by Prime Minister Keir Starmer and Energy Secretary Ed Miliband, who have in recent weeks alluded to fuel retailers engaging in unfair practices that hit drivers in the wallet.
These assertions have been roundly denied and criticised by those working in the sector, who cite thin margins and say such messaging is leading to staff in petrol stations being attacked and abused.
Separately, energy minister Michael Shanks urged drivers not to change their refuelling habits despite the volatility of petrol and diesel prices. The average cost of a litre of unleaded currently stands at 148.5p, and diesel 173.8p, up around 16p and 31p compared to before the Iranian crisis began, according to the RAC.
Shanks told Times Radio that drivers “should do everything as absolutely normal because there is no shortage of fuel anywhere in the country at the moment”.
