Fuel retailers in the Middle East are not taking advantage of the crisis, says UK regulator

The UK's competition regulator found no evidence that retailers had altered their fuel pricing strategy to take advantage the Middle East Crisis. However, the regulator warned that the weak competition in this sector was still a problem.

In a press release, the Competition and Markets Authority said that its analysis showed that high wholesale prices continued 'to explain most of increase in pump price in March and into April.

Following a spike in oil prices tied to the U.S./Israeli war in Iran that began in February, the British government is under pressure to assist households with?fuel prices and?an increase in other costs.

Last month, the Finance Minister Rachel Reeves announced a series of measures to ease the cost-of living pressures that have resulted in Britain.

CMA boss Sarah Cardell said in a statement that "we know prices at gas pumps are putting real pressure on the drivers' pocket".

"While our analysis shows that the increase in wholesale prices is the main cause of higher fuel 'prices, we are concerned about the weak competition in the industry leaving drivers to pay more."

The regulator said that it would "closely monitor" whether the?improvement of supply conditions is reflected in retail prices. (Reporting and writing by Sam Tabahriti, Muvija M. Editing by Michael Holden.)

(source: Reuters)