What's happened
The CMA reports fuel margins have remained broadly steady since late February, with March showing margins near last year’s high levels. While some retailers have seen elevated margins, the watchdog says the overall picture is consistent with ongoing pressure from Middle East turmoil on wholesale costs. The RAC Foundation estimates drivers have shouldered substantial extra costs across petrol and diesel since the conflict began.
What's behind the headline?
What is changing
- The CMA has found that average retailer margins have not increased on balance, despite sharp oil-price movements in March. This indicates that price changes at the pump are not uniformly passed through and local competition still matters.
Why this matters
- For motorists, the key takeaway is that savings remain highly dependent on where you shop. Local variations can yield small but real differences in a tank of fuel.
What to watch
- The CMA plans to keep monitoring and to act where costs do not reflect real wholesale pressures. If wholesale costs fall, expect the regulator to push for faster transmission to pump prices. The RAC Foundation notes diesel users are bearing a larger share of the burden, which could influence commercial pricing and transport costs.
Reader impact
- Consumers should compare prices routinely and use price-sharing tools where available to maximise savings. The broader message is that competition remains a central lever for keeping pump prices in check, even amid geopolitical shocks.
How we got here
The CMA has been monitoring fuel margins since the start of the war in the Middle East, amid concerns about competition among fuel retailers. Oil prices rose sharply in March, driven by geopolitical tensions, which has fed through to wholesale costs. VAT and pump prices have risen, with additional costs borne by both motorists and the Treasury. Industry groups warn of regional variations and persistent price gaps between motorway and non-motorway forecourts.
Our analysis
The Independent has reported that the CMA found fuel margins have been broadly unchanged since late February, with some March variations for a minority of retailers and a focus on ensuring cost savings reach motorists. The article quotes CMA chief executive Sarah Cardell and notes ongoing concerns about competitive pressure. The RAC Foundation analysis cited by The Independent estimates total extra costs to motorists and VAT revenue, highlighting how war-driven price rises have affected consumers and treasury receipts. The Scotsman mirrors the same RAC Foundation figures and emphasizes the burden on diesel owners. Direct quotes from Steve Gooding and Luke Bosdet are included in the reporting to illustrate the range of industry and watchdog perspectives.
Go deeper
- Have you noticed local price differences at nearby stations lately?
- Do you think the CMA’s monitoring will translate into faster pass-through of wholesale costs to motorists?
- Will the pricing gap between motorway and non-motorway forecourts narrow if competition improves?
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