Westminster Policy News & Legislative Analysis

CMA sets out response on heating oil and road fuel pricing

Sarah Cardell has responded to the Chancellor’s request for vigilance on pricing, confirming the Competition and Markets Authority will use its full powers where there is evidence of breaches of competition or consumer protection law. The CMA’s letter, dated 14 March 2026, follows the Chancellor’s correspondence of 13 March and notes that wholesale pressures linked to the Middle East are affecting UK prices. (assets.publishing.service.gov.uk)

On heating oil, the CMA has begun contacting both direct suppliers and intermediaries to obtain evidence on reported practices. The initial focus covers two issues: cancelled orders that are then re‑quoted at significantly higher prices, and price rises applied to automated deliveries triggered by tank‑level monitoring. The authority stresses that no breach should be assumed at this stage, but it will not hesitate to take enforcement action if potential infringements are identified. (assets.publishing.service.gov.uk)

In parallel, officials are testing how far retail price movements reflect underlying wholesale costs and will take forward a more detailed examination of the heating‑oil market at pace. Cardell also signals possible advice to government on regulatory options, noting that off‑grid households dependent on heating oil do not receive the same protections as on‑grid gas consumers. (assets.publishing.service.gov.uk)

On road fuel, the CMA will step up its statutory monitoring, accelerating analysis of recent pricing and bringing forward data collection from retailers to detect any exploitation quickly. The regulator highlights enhanced detection of so‑called “rocket and feather” behaviour and says the forthcoming Fuel Finder data will strengthen both oversight and day‑to‑day competition at the pump. (assets.publishing.service.gov.uk)

Fuel Finder is the government’s statutory open‑data scheme requiring petrol filling stations to provide near real‑time prices to improve transparency and spur competition. It sits alongside the CMA’s formal road‑fuel monitoring powers introduced by the Digital Markets, Competition and Consumers Act 2024; the Motor Fuel Price (Open Data) Regulations 2025 underpin the data‑reporting duty and compliance regime. (gov.uk)

Beyond energy products, the CMA will work with departments and other regulators to identify and monitor sectors most exposed to disruption and cost increases, including agricultural inputs such as fertiliser and red diesel, as well as groceries and travel. The objective is to ensure that any price rises reflect genuine cost pressures, information is timely and transparent, and suppliers treat customers fairly. (assets.publishing.service.gov.uk)

For consumers, the immediate signal is active scrutiny where households are most exposed. Around 1.5 million homes rely on heating oil, predominantly in rural areas and in Northern Ireland; the CMA says it is moving quickly to assess concerns and is using its updated consumer‑enforcement toolkit under the DMCC Act to secure fair treatment. (gov.uk)

For businesses, the short‑term ask is practical. Heating‑oil firms should retain clear evidence linking price changes to costs and review automated‑delivery terms for fairness. Forecourt operators should prepare for accelerated data requests and ensure Fuel Finder reporting is compliant; the CMA has indicated it will use its DMCC Act powers to secure data and act on non‑compliance. The Chancellor has also invited the CMA to a roundtable with operators to discuss implementation. (gov.uk)