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The Competition and Markets Authority (CMA) has found no evidence that fuel retailers altered pricing strategies to take advantage of the Middle East crisis.
It comes as the competition watchdog published its latest road fuel monitoring report, assessing how the conflict affected pump prices and retail fuel margins.
Elevated wholesale prices continue to explain most of the price increases throughout March and into April, according to the report.
Nonetheless, sustained high retail margins remain a concern for the regulator, reflecting weak competitive dynamics identified during its 2023 market study.
Average fuel margins for supermarket and non-supermarket retailers remained at historically high levels, increasing slightly in April to 11.3 pence per litre.
The regulator noted that individual retailers followed competitors’ price increases to mitigate supply constraints and inventory pressures, rather than actively competing.
According to the CMA, supermarkets remain the cheapest places to buy fuel on average, while motorway service stations continue to charge a substantial premium.
It added that drivers can save up to £9 per tank by shopping around and using navigation apps and comparison websites backed by Fuel Finder.
The watchdog will publish its next market update in August, covering developments until the end of June to assess if savings are passed on.
CEO of the CMA, Sarah Cardell, said: “We know prices at the pump are putting real pressure on drivers’ pockets. While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more.
“Retailers should be in no doubt that we are continuing to monitor prices and margins closely and expect any reductions in wholesale prices to be rapidly and fully passed on to drivers.”
She added: “In the meantime, Fuel Finder can help drivers save up to £9 a tank. The more motorists make use of Fuel Finder-backed services, the better it works – saving money now and driving down prices in the long run.”
