Chancellor Rachel Reeves has put petrol retailers on notice, pledging to meet with forecourt operators this week after it emerged that some garages are already charging drivers as much as 180p per litre, a stark contrast to others offering the same fuel for under 130p. The intervention signals growing concern within government that energy companies may be using geopolitical instability as cover for excessive profit-taking.
The warning came as MPs were briefed that the Labour government is closely monitoring fuel pricing amid the ongoing Middle East war, which has rattled global oil markets and pushed costs sharply higher for British motorists in recent weeks. Reeves’ decision to go public with her concerns reflects the political sensitivity of fuel prices, which remain one of the most visceral economic pressures felt by ordinary households.
A Government Drawing a Hard Line
Addressing the House of Commons, Reeves was unusually direct in her language. “This government will not tolerate price gouging,” she told MPs, adding that she would meet with petrol retailers to “raise concerns and to get prices down at the pumps.” She also warned that she would “not hesitate to call out retailers who fail to provide data to the Fuel Finder“, the government’s price transparency tool designed to help drivers locate cheaper options nearby.
Reeves further revealed that she has asked the Competition and Markets Authority to maintain vigilance across consumer prices, with a specific focus on road fuel and heating oil. The message was unambiguous: “I will not tolerate any company exploiting the current crisis to make excess profits at consumers’ expense.” It is a notably confrontational stance from a Chancellor who has, at other points, faced criticism for being insufficiently assertive on cost-of-living pressures.
Diesel Drivers Bearing the Sharpest Burden
While the headline figure of 180p per litre has attracted the most attention, the deeper crisis may be unfolding at the diesel pump. According to the RAC’s head of policy, Simon Williams, diesel has risen by nearly 13p, approximately 9%, since February 28, reaching 155.1p per litre, its highest point since May 2024. Unleaded petrol, meanwhile, has climbed to an average of 139p, up a penny in the 24 hours prior to his comments.
Williams offered a sobering projection for the weeks ahead. If oil were to stabilize at around $90 per barrel and the pound held its current position against the dollar, average petrol prices could reach around 140p per litre, with diesel potentially climbing to 167p. “It’s those that depend on diesel who are really bearing the brunt,” he said, urging drivers to use comparison tools like the myRAC app to avoid overpaying wherever possible.
The disparity between the cheapest and most expensive forecourts, a gap of roughly 50p per litre, suggests that market forces alone are not producing uniform outcomes for consumers.
