UK Regulator Finds No Proof Fuel Retailers Raised Prices Due to Crisis
Competition Regulator’s Findings on Fuel Pricing
Overview of the Regulator’s Statement
LONDON, June 1 (Reuters) - Britain's competition regulator has found no evidence that retailers had altered their fuel pricing strategies to take advantage of the Middle East crisis, but warned that weak competition in the sector remained a concern, it said on Monday.
Analysis of Fuel Price Increases
Wholesale Prices as the Main Factor
The Competition and Markets Authority's analysis indicated that elevated wholesale prices continued to explain most of the increase in pump prices in March and into April, it said in a statement.
Government Response to Rising Costs
The British government, like others globally, is under pressure to help households cope with rising fuel costs and a knock-on increase in other prices, following a surge in oil prices linked to the U.S.-Israel war in Iran which began in February.
Finance minister Rachel Reeves set out a range of support measures last month aimed at easing the resulting cost-of-living pressures in Britain.
Regulator’s Concerns and Future Actions
Competition in the Fuel Retail Sector
"We know prices at the pump are putting real pressure on drivers' pockets," CMA boss Sarah Cardell said in the statement.
"While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more."
Monitoring Retail Price Adjustments
The regulator said it would be paying "close attention" to whether improvement in supply conditions is passed on to consumers in retail prices.
Reporting and Editorial Credits
(Reporting by Sam Tabahriti; writing by Muvija M; editing by Michael Holden)
