Reeves and Miliband issues petrol price warning – Daily Business

Petrol retailers have been warned about hiking prices (pic: Terry Murden / DB Media Services)

Chancellor Rachel Reeves has warned petrol and diesel retailers not to exploit the Iran conflict by profiteering at the pumps.

Ms Reeves has asked the Competition and Markets Authority to be on high alert for “unjustifiable” price rises on petrol, diesel and heating oil.

The Chancellor said sahe will not stand by if firms use the uncertainty as a cover to push up prices and protect margins at the expense of drivers. 

Her intervention comes ahead of a Downing Street roundtable this evening, where petrol retailers and energy suppliers will be pressed on what they are doing to keep prices down — and what more they can do to ensure changes in costs are passed on fairly. 

She 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’ intervention comes as she is under pressure to scrap a proposed rise in fuel duty in September.

Energy Secretary Ed Miliband added: “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.”

On Friday, the Chancellor and Energy Secretary will call on industry to explain why prices vary so widely, how quickly forecourts respond when costs ease, and what immediate steps firms will take to make sure motorists aren’t left paying over the odds.

The Chancellor noted earlier this week that prices varied from £1.27 per litre to £1.80 per litre between forecourts.

This comes after Mr Miliband met with the CEO of the Competition and Markets Authority on Tuesday 10 March to discuss ensuring consumers were protected from any unfair price rises.

All major supermarkets have confirmed they are now providing real-time data to the government’s Fuel Finder scheme, with almost 90% of retailers already registered, and government taking action on the final 10%. 

Retail sales flatten

Shopper spending in Scotland eased back in February, bringing an end to a seven-month run of growth.

Total sales were flat (0%) compared with February 2025, when they fell by 0.4%. This was below the 3-month average increase of 1.2% and below the 12-month average increase of 1%. Adjusted for inflation, there was a year-on-year decrease of 1.1%.

David Lonsdale, director, Scottish Retail Consortium, said: “Worries that January’s sparkling showing was an outlier appear to have been confirmed with flat sales figures correlating with a fall in shopper footfall.

“This brings an end to a seven-month run of pedestrian but nonetheless positive growth. It reinforces our concern that the challenges for retail are far from being in the rear-view mirror.

“The costs crunch affecting households and firms remain real and could be exacerbated by prolonged conflict in the Middle East, which may make for a bumpy few months ahead.”

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