Some fuel retailers are failing to pass on falling wholesale prices to drivers quickly enough, the UK's competition watchdog has warned. The Competition and Markets Authority (CMA) revealed that more than a thousand warning letters have been sent to retailers who have not provided pricing data to the government's Fuel Finder service.
Last quarter, the CMA expressed concerns over "passive pricing strategies" employed by many retailers, which they stated contributed to high profit margins amid increased costs for drivers influenced by the conflict in Iran. Between May and June, the CMA found that some retailers did not immediately reflect decreases in wholesale diesel prices at the pump, a delay that could have hindered market competition.
While overall fuel prices at the pumps decreased in June, they remained significantly higher than pre-conflict levels. Retailer profit margins were either at or above the historically high levels observed in 2025. However, the CMA did not uncover evidence of fuel retailers engaging in profiteering related to the conflict in Iran.
Since April, the CMA has issued 1,166 letters and 53 compliance notices to retailers for failing to register with the Fuel Finder price comparison scheme. This service, developed for the Department for Energy Security and Net Zero, aims to provide up-to-date fuel price data to third-party websites and apps, enabling drivers to find cheaper fuel.
The Fuel Finder scheme was launched following an investigation that indicated drivers were consistently overpaying for fuel. Approximately 97 percent of petrol stations, accounting for about 99 percent of UK fuel sales, are now registered with the scheme. No fines have been issued to date.
The regulator plans to actively monitor the road fuel market and conduct a more detailed review in the autumn to ensure fair pricing for consumers. Sarah Cardell, chief executive of the CMA, stated that the monitoring aims to assure drivers that retailers are not exploiting the situation in the Middle East and that reductions in wholesale prices will be promptly and fully passed on to consumers. She also noted that the Fuel Finder service can assist drivers in saving money.
RAC head of policy Simon Williams commented that the persistent high margins and lack of competition are concerning, especially the delay in reducing prices when wholesale diesel costs fell. He welcomed the CMA's closer examination of retailer pricing strategies.
Previous reports highlighted issues with the Fuel Finder scheme, with the automotive industry describing it as a "disaster" due to data errors that could potentially cost drivers up to £260 annually. Research by What Car? found significant flaws in the scheme, including incorrect locations and mislabeled forecourts. Clare Lafferty from PetrolPrices.com noted that drivers relying on potentially inaccurate Fuel Finder data are at a disadvantage.
The AA stated that the CMA's update once again points to failures in charging fair prices for petrol and diesel at the expense of everyday drivers.