The Competition and Markets Authority says that while it considers fuel margins remain “at historically high levels”, they rose just 0.4p in March, currently standing at the same 10.7ppl they resided at last year.
But the CMA also found that some individual retailers increased their margins by a greater degree last month, a rise it is “investigating”. The organisation is also looking into why between December 2025 and January 2026 some operators’ margins rose to 12.7ppl.
The head of the organisation says its “scrutiny” of the sector “is working”, but the body makes no mention of increases to National Insurance, minimum wage, energy bills or business rates in its report, despite hikes in these areas requiring retailers to cut costs or increase prices.
Sarah Cardell, chief executive of the CMA, comments
“The conflict in the Middle East has driven sharp increases in road fuel prices, putting real pressure on households and businesses across the UK. The CMA’s job is to ensure these rises reflect genuine cost pressures — especially given our previous work showing competition among fuel retailers isn’t as strong as it should be.
She adds: “Some individual retailers’ margins did rise in March. We are investigating why and will report further in May.”
Gordon Balmer, executive director of the Petrol Retailers Association, says that he welcomes the report’s findings that there has not been a widespread issue of retailers earning higher margins since the beginning of the conflict in the Middle East.
He adds: “Whilst the report mentions higher margins, it should be noted that retail margins have remained higher due to increases in operating costs including national living wage, high energy costs and an increase in fuel theft and crime. All of these costs have to be factored into operating expenses have to be reflected in the pump for consumers.”
Meanwhile, he asserts that since the start of the conflict ”the Treasury has pocketed extra revenue from VAT in fuel sales”. He is urging the Chancellor to ”protect motorists” by cancelling planned fuel duty increases, and to follow the example of Spain, Poland, Germany, France, Italy, Ireland and Australia by temporarily cutting fuel tax.
