The Competition and Markets Authority has found no evidence of widespread fuel price-gouging by UK retailers in the weeks after the US-Israel war with Iran began, according to BBC News. For small businesses, that is reassuring up to a point. It does not mean fuel costs are painless, predictable or fully competitive.
The watchdog said average retail fuel margins were broadly unchanged between February and March, close to or equal to last year’s 10.7 pence per litre average. But it is still investigating margin increases at two supermarkets and three non-supermarket retailers, and it has pointed to historically high margins as an ongoing competition concern.
That makes this a useful moment for SMEs to separate two issues: whether retailers are widely exploiting the crisis, and whether fuel remains a serious operating cost that deserves active management.
What the CMA found
The CMA’s latest fuel market monitoring suggests the sharp rise in pump prices since the conflict began was mainly driven by wider cost pressures, especially higher oil prices, rather than a broad rise in retailer margins. The BBC reported RAC figures showing petrol peaked at 158.3p a litre and diesel at 191.5p a litre in mid-April.
Prices have eased slightly since then, but remain well above pre-war levels. For businesses running vans, cars, site visits, local deliveries or mobile teams, that difference can quickly become a weekly cash-flow issue.
The CMA also said there were significant local variations in pump prices, with potential savings of up to £9 per tank if drivers shop around. That finding matters for smaller firms because fuel buying is often decentralised: individual drivers fill up wherever is convenient, rather than through a planned purchasing process.
Why this matters for small businesses
Fuel is one of those costs that can leak into almost every part of a small operation. It affects delivery firms, tradespeople, wholesalers, hospitality suppliers, field engineers, home-care providers, rural businesses and retailers that collect or move stock. Even office-based firms may feel it through supplier delivery charges and staff travel claims.
The main SME takeaway is not to assume that “no widespread gouging” means no problem. The CMA is still looking at individual retailers, and motoring groups have raised concerns about how quickly lower wholesale costs are passed on at the pump. Small firms cannot control the global oil market, but they can reduce avoidable exposure.
This links directly with the broader cost-pressure picture we covered in our earlier guide to fuel duty uncertainty for UK small businesses. The risk for SMEs is that fuel becomes a moving target in pricing, quotes and margins at the same time as customers are watching their own budgets.
What SMEs should check now
First, review how fuel is bought. If staff use personal cards or ad hoc purchases, ask whether the business has enough visibility over where, when and at what price vehicles are being filled. A fuel card or clearer expense policy will not solve price volatility, but it can make costs easier to track and compare.
Second, look again at quotes and delivery charges. If your business prices work months ahead, recent pump-price swings may have eaten into margins. Builders, decorators, couriers, caterers and mobile service firms should check whether travel assumptions still reflect reality.
Third, compare local prices where it is practical. The CMA’s point about local variation does not mean drivers should waste time chasing tiny savings. But if a regular route passes several forecourts, choosing a consistently cheaper one can add up across a fleet, even a very small fleet.
Fourth, tighten routing and scheduling. Combining visits, avoiding unnecessary repeat journeys and planning stock runs more carefully can deliver savings without cutting service. For businesses already under pressure from late payments or slower demand, those operational details can protect cash. Our recent piece on late payments and SME cash flow explains why small weekly costs can matter when money is coming in slowly.
The practical takeaway
The CMA’s update should calm fears of a market-wide rip-off, but it should not make small firms complacent. Fuel margins remain under scrutiny, local price gaps are meaningful, and pump prices are still much higher than they were before the latest geopolitical shock.
For SMEs, the sensible response is practical: track fuel spend closely, update pricing assumptions, plan journeys carefully and keep an eye on whether lower wholesale costs are reflected locally. If fuel is a material part of your cost base, treat it as a managed business expense rather than an unavoidable background bill.
Sources
- BBC News, No evidence of widespread fuel price-gouging, says watchdog, published 1 May 2026
- Competition and Markets Authority fuel market monitoring comments as reported by BBC News
- RAC pump-price data as reported by BBC News
