Fuel retailers accused of holding back petrol price cuts as wholesale costs fall by competition watchdog

See more This is Money on Google - save us as a Preferred Source Updated: 08:02 EDT, 18 August 2026 Some forecourts are still not passing on wholesale fuel price changes to drivers quickly enough, the UK competition watchdog warns.More than a thousand warning letters have been sent to retailers failing to give prices to the Government's Fuel Finder service, the Competition and Markets Authority has revealed.Last quarter, the CMA raised concerns in its update on the fuel market over 'passive pricing strategies' used by the majority of retailers, which it said were helping to keep profit margins high amid soaring cost pressures on drivers from the Iran war.The CMA found that, between May and June, some retailers did not immediately pass on falls in wholesale diesel prices to drivers. This could have boosted competition in the market.While costs fell overall at the pumps in June, prices remained significantly higher than before the Middle East conflict and retailer profit margins were either at or above the historically high levels seen in 2025.However, the CMA did not find any evidence of profiteering among fuel retailers on the back of the war in Iran. The Competition and Markets Authority (CMA) has found that, between May and June, some fuel retailers did not immediately pass on falls in wholesale diesel prices to driversSince April, the CMA has sent 1,166 letters to retailers and 53 compliance notices over a failure to register with the Government-run Fuel Finder price comparison scheme.Created for the Government’s Department for Energy Security and Net Zero (DESNZ), Fuel Finder gives third-party websites and apps up-to-date fuel price data so drivers can, theoretically, find the cheapest fuel and save money.It was launched following a major investigation into the fuel retail sector that discovered drivers are being ripped off consistently at the pumps.The CMA says that around 97 per cent of petrol stations are now registered with the scheme, which account for about 99 per cent of fuel sold in the UK, and it had not yet had to issue any fines.The regulator will now 'actively monitor' and carry out a more detailed review of the road fuel market in the autumn to ensure customers are paying a fair price for fuel across the UK.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.'In the meantime, Fuel Finder can help drivers save money when they fill up.'RAC head of policy Simon Williams 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.'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.'Last month, This is Money reported how the automotive industry has branded the Fuel Finder scheme a 'disaster' due to multiple data errors that make it impossible for drivers to know whether forecourt prices are up to date.Instead of saving drivers money, issues with the £2million scheme could in fact cost drivers as much as £260 a year.Research by automotive consumer champion What Car? found the Government's Fuel Finder to have serious 'flaws' – from wrong locations to incorrectly labelled forecourts.Clare Lafferty from PetrolPrices.com, which supplied What Car? with data, commented: '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.'Commenting on the CMA's latest warnings, the AA said the watchdog's update 'once again highlights some failures to not charge a fair price for petrol and diesel – at the expense of everyday drivers'.SAVE MONEY, MAKE MONEYUp to £250 cashbackUp to £250 cashback2.5% cashback when investing at least £2004.56% cash Isa4.56% cash IsaTrading 212: 0.96% fixed 12-month bonus£200 Sipp cashback£200 Sipp cashbackFund a pension with at least £20,000Up to £150 cashbackUp to £150 cashbackOpen a savings account with at least £5,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.