The Competition and Markets Authority has found no evidence that retailers changed their fuel pricing strategies to take advantage of the Middle East crisis, but warned that weak competition across the sector remains a concern.

The regulator said its analysis showed higher wholesale prices continued to explain most of the increase in pump prices during March and into April.

Fuel costs have risen following a surge in oil prices linked to the conflict in the Middle East, piling further pressure on UK households already facing a wider squeeze on living costs.

The government has come under growing pressure to help consumers manage rising fuel prices and the knock-on impact across other areas of spending.

Chancellor Rachel Reeves set out a package of support measures last month aimed at easing cost-of-living pressures.

CMA chief executive Sarah Cardell said drivers were continuing to feel the impact of higher pump prices.

“We know prices at the pump are putting real pressure on drivers’ pockets,” she said.

“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.”

The CMA said it would continue to monitor the market closely and assess whether any improvement in supply conditions is passed on to consumers through lower retail prices.

The regulator has previously raised concerns over competition in the UK fuel market, with supermarkets and other forecourt operators coming under scrutiny over pricing transparency and margins.

Its latest findings suggest retailers have not used the recent geopolitical disruption as a reason to alter their pricing behaviour, but the watchdog warned that drivers could still be losing out if competition remains weak.

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