Rachel Reeves asks watchdog to ‘crack down’ on fuel ‘rip-offs’ amid Iran war

Rachel Reeves has asked the competition watchdog to “crack down” on “rip-off” fuel prices ahead of a meeting with energy bosses to warn against profiteering amid the Iran war.

The Chancellor insisted she “will not tolerate” firms exploiting uncertainty in the Middle East for excess financial gain as concerns grow over its impact on the cost of living.

The Government has already promised to intervene if companies engage in “unfair” practices that would hit customers facing a rise in the price of home heating oil, which is not covered by Ofgem’s energy price cap.

The Treasury has said Ms Reeves and Energy Secretary Ed Miliband will also press petrol retailers and energy suppliers to ensure drivers are not left paying “over the odds” in a Downing Street meeting on Friday.

Ahead of the talks, the Chancellor wrote to the Competition and Markets Authority (CMA) requesting it to stay on “high alert” for “unjustifiable” price hikes, the ministry said.

“I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense. I’m backing drivers and families – and I expect a fair deal at the pump,” Ms Reeves said.

It comes after the CMA warned it was putting fuel retailers “on notice” of plans to step up monitoring of petrol and diesel prices in light of the Middle East conflict.

The watchdog told firms it was bringing forward formal requirements to supply revenue, costs and sales data.

The CMA said it will also consider how quickly fuel prices rise and fall as wholesale costs change and whether there is evidence of so-called rocket and feather pricing.

On Wednesday, the RAC said diesel prices had risen by nearly 9% since February 28.

Petrol prices were on average 6% more across the same period.

Fuel duty

The Chancellor has faced opposition pressure to scrap a planned increase in fuel duty, which is due to rise by 1p from September following last year’s budget.

Prime Minister Sir Keir Starmer has since said the Government will keep the situation “under review” in light of the Middle East conflict.

The Treasury said drivers could compare the cost of fuel offered by petrol stations across the UK through the Fuel Finder scheme.

Mr Miliband said: “Tackling the cost of living is our number one priority – all fuel retailers must sign up for Fuel Finder so drivers can find the cheapest price at the pump.

“We will not hesitate to act to protect consumers against any unfair practices.”