The government said it “will not tolerate” fuel companies exploiting the current conflict in the Middle East and that the competition watchdog is poised to take action over undue price increases.
The Chancellor of the Exchequer Rachel Reeves has written to the competition and markets authority (CMA) thanking it for reassurances that unjustifiable price increase will be dealt with, ahead of a meeting with fuel retailers and energy suppliers at Downing Street today (13 March).
She said it was vital that businesses and consumers were not hit by undue increases in the price of petrol and diesel “at this challenging time”.
In the letter, Reeves said: “I am confident that the CMA will not hesitate to use any powers at its disposal to act strongly against any unacceptable conduct, such as profiteering or exploitation of the situation.
“I will not tolerate any company exploiting the current crisis to make excess profits at customers’ expense.”
Logistics UK said it welcomed the decisive action: “Concrete action which helps logistics businesses to mitigate the cost of fuel – the single biggest operating cost – is timely and helpful,” said Ben Fletcher, chief executive of Logistics UK.
“As an industry, our members work at low margins and cannot absorb significant cost rises. Excessive price rises would inevitably be passed on to customers, which means consumers pay more and would increase the cost of living challenge.
“We look forward to a positive outcome from today’s meeting.”
