Ministers have signalled a firm stance on pricing practices as oil costs surge. In the Commons on 10 March 2026, the Chancellor said she would meet petrol retailers this week and confirmed she had asked the Competition and Markets Authority to examine prices at the pump and for heating oil, stating that price gouging would not be tolerated. (hansard.parliament.uk)
Market stress is evident. Brent crude hovered near $100 per barrel on Friday 13 March amid shipping disruption through the Strait of Hormuz linked to the Iran war, intensifying pressure on wholesale fuel costs. (apnews.com)
The government is leaning on competition and enforcement rather than subsidy. Since April 2025, the CMA has had direct consumer law enforcement powers, including fines of up to 10% of a company’s global turnover, and it has reported that retail fuel margins remain at historically elevated levels. (gov.uk)
Transparency measures are central. The government’s cheaper fuel finder tool has highlighted wide forecourt variation-examples ranged from under 130p to almost 180p per litre on 10 March-and a statutory Fuel Finder scheme and monitoring function are being implemented using powers in the Digital Markets, Competition and Consumers Act. (hansard.parliament.uk)
Households reliant on heating oil are a priority for officials. On 11 March the CMA said it is examining consumer reports and noted that around 1.5 million UK homes, predominantly in rural areas, depend on oil, while official statistics show it remains the main heating source for most households in Northern Ireland. (gov.uk)
Fuel duty policy remains under active review. HM Treasury confirms the current 5p‑per‑litre cut runs to 31 August 2026, with staged increases of 1p on 1 September 2026, 2p on 1 December 2026 and 2p on 1 March 2027 to unwind the temporary reduction; ministers told MPs this week that taxes will be kept under review. (gov.uk)
Debate continues over domestic supply. The government’s North Sea Future Plan implements the commitment not to issue new exploration licences while managing existing fields to the end of their lives, including through Transitional Energy Certificates for near‑field activity. DESNZ modelling indicates that ceasing exploration has only a marginal effect on short‑term security of supply given basin maturity. (gov.uk)
Immediate engagement with industry is planned. The Chancellor said she will meet forecourt operators this week and the Financial Secretary will convene MPs on heating oil to gather evidence on local impacts and retailer conduct. (hansard.parliament.uk)
Longer‑term resilience work is also proceeding. Planning reforms published on 6 February 2025 aim to shorten nuclear delivery by bringing small modular reactors into scope, removing the fixed list of eight eligible sites and establishing a Nuclear Regulatory Taskforce to streamline approvals while upholding safety standards. (gov.uk)
What this means for the next quarter is straightforward. Retailers should ensure accurate, timely price data submissions and be prepared to evidence pricing decisions to the CMA. Households and fleet managers should expect prices to remain sensitive to global supply conditions pending any further ministerial decisions on duty. (gov.uk)