Key insights
- UK fuel retailers maintained high margins despite the Iran conflict, raising concerns about lack of competition. UK CPI rose 3.3% in March, driven by an 8.7% jump in motor fuel prices. While primarily a UK issue, sustained high energy prices globally could contribute to inflationary pressures, indirectly impacting US equities through broader macroeconomic effects.
Investing.com -- Fuel retailers in the UK kept their margins largely unchanged during the initial shock from the Iran war, the Competition and Markets Authority said on Friday, while noting that firms continue to benefit from a lack of competition in the sector.
The CMA, which increased monitoring of profits from fuel sales following the Iran conflict, said it will investigate instances where individual retailer margins rose between February and March.
Fuel margins remain at historically high levels, reflecting concern about a lack of competitive pressure in the fuel retail market, the CMA said in a statement.
The report comes as the UK’s consumer prices index rose 3.3% in March, driven by an 8.7% jump in motor fuel prices, marking the largest monthly gain since 2022 when Russia invaded Ukraine.
The CMA found local price variations and said motorists could save as much as £9 when filling a tank of fuel if drivers shop around.
The watchdog previously said that while the increase in fuel prices was inevitable, it will ensure fuel stations do not exploit the situation.
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