Fuel stations 'not taking advantage' of Iran war despite near-record petrol and diesel prices

A new report has warned that there is a lack of effective competition between petrol stations around the UK, impacting fuel prices paid by drivers.

The latest monitoring report from the Competition and Markets Authority (CMA) has assessed the impact that the war in the Middle East has had on fuel prices and margins.

Fresh data until the end of June 2026 revealed that there was no evidence that retailers actively changed their pricing strategies to take advantage of the crisis.

Drivers have seen petrol and diesel prices soar in recent months following the outbreak of fighting between the United States and Iran at the end of February.

Prices remain volatile, especially against the backdrop of fluctuating global oil costs, as drivers are facing some of the highest prices in more than three years.

At present, drivers are paying around 161.29p per litre for petrol, while diesel car owners are being charged an average of 181.84p.

The CMA's analysis of pump prices found that the Iran war had caused a "rapid increase" in wholesale fuel costs, with drivers largely footing the bill.

While no overt profiteering was uncovered, the CMA said it remained concerned about the passive pricing strategies used by the majority of retailers.

Some retailers also failed to immediately pass on reductions when the wholesale price of diesel dropped, meaning drivers had to pay more for a sustained period of time.

Sarah Cardell, chief executive of the CMA, said: "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.

"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."

The CMA stated that it would continue to monitor the road fuel market, providing a more detailed review in the autumn.

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This is expected to include further analysis of pricing strategies and whether wholesale price changes are being reflected in retail prices.

It will also examine how and why fuel prices vary between local areas, with an overarching aim to ensure drivers are paying a fair price for their fuel.

Ms Cardell called on motorists to use the Government's Fuel Finder tool to find the cheapest petrol and diesel prices in their local area.

"The more motorists make use of Fuel Finder-backed services, the better it works - saving money now and driving down prices in the long run," she added.