The Competition and Markets Authority has warned petrol retailers for failing to pass on falling wholesale fuel prices to drivers quickly enough across the UK.
Britain's competition regulator revealed it has issued more than 1,000 warning letters to fuel businesses that failed to submit their forecourt prices to the Government's Fuel Finder scheme.
In its latest market update, the watchdog raised concerns over passive pricing strategies used by a majority of retailers. The Competition and Markets Authority found that between May and June, several retailers failed to pass on drops in wholesale diesel costs immediately, holding back savings that could have boosted market competition.
The Competition and Markets Authority is the primary non-ministerial government department responsible for enforcing competition and consumer law in the United Kingdom. While overall pump prices fell slightly in June, the regulator noted that forecourt costs remain significantly higher than before the outbreak of war in Iran, with retailer profit margins matching or exceeding the record highs seen in 2025.
Despite the high margins, official investigations concluded there was no direct evidence of profiteering linked to the Middle East conflict.
Fuel Finder scheme warnings
Official figures show the regulator has sent 1,166 warning letters and 53 compliance notices to retailers since April for failing to sign up to the mandatory Fuel Finder price comparison system. The initiative was created for the Department for Energy Security and Net Zero, the ministerial department tasked with overseeing energy policy and net zero targets across the country.
The Fuel Finder service supplies live price data to third-party mobile applications and price comparison websites, allowing motorists to locate cheap fuel in their local area. It was introduced after a major sector investigation concluded that drivers were consistently being overcharged at forecourts. Approximately 97 per cent of UK petrol stations are now registered, representing around 99 per cent of total fuel sales, and no financial fines have been levied to date.
Sarah Cardell, chief executive of the Competition and Markets Authority, stressed that watchdog monitoring remains essential to protect consumers. "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," Cardell said.
Cardell added: "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. In the meantime, Fuel Finder can help drivers save money when they fill up."
Industry flaws and driver costs
The £2 million Fuel Finder initiative has faced mounting criticism from the automotive industry, which branded the service a disaster last month following reports of widespread data errors. Research conducted by consumer testing group What Car? identified major flaws in the system, including inaccurate forecourt locations and incorrectly labelled petrol stations.
Data provided for the investigation by price tracking website PetrolPrices.com highlighted how gaps in reporting harm consumers. Clare Lafferty of PetrolPrices.com said: "If someone is relying on the Fuel Finder data to try and save money, if they're in an area where some of the fuel stations are not updating prices, they are at a disadvantage." Industry analysts warned that data inaccuracies could cost motorists up to £260 a year rather than generating expected savings.
Motoring group reactions
Motoring organisations have voiced deep concern over forecourt pricing patterns. Simon Williams, head of policy at the RAC, the UK automotive services company, 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."
Williams welcomed further regulatory oversight, adding: "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." The Automobile Association, commonly known as the AA, said the findings once again highlighted failures to charge fair prices for petrol and diesel at the expense of everyday drivers.
Autumn fuel market review
The Competition and Markets Authority confirmed it will now actively monitor forecourt prices and launch a detailed review of the road fuel market in the autumn. The investigation will examine retailer pricing strategies across the country to ensure UK drivers pay fair prices at the pump as global energy market pressures continue.
