The UK’s Competition and Markets Authority (CMA) has intensified its scrutiny of petrol and diesel pricing, explicitly warning about potential ‘rocket and feather’ practices amid rising fuel costs triggered by the ongoing conflict in the Middle East.
In a statement on Thursday (12 March), the CMA announced it is accelerating its monitoring of retail fuel margins and will closely examine how quickly pump prices respond to changes in wholesale costs.
The regulator highlighted concerns that retailers might be exploiting geopolitical tensions to push prices higher faster than justified, while passing on reductions far more slowly.
“Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures,” said Juliette Enser, the CMA’s Executive Director for Markets. “We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”
Rocket and feather pricing
The term “rocket and feather” pricing describes a pattern where retail prices surge upward rapidly – like a rocket – when wholesale or crude oil costs rise, but descend gradually – like a feather- when those costs fall.
This asymmetry can result in persistently higher margins for retailers and elevated costs for consumers, even after underlying market pressures ease.
The regulator is issuing formal information requests to fuel companies for detailed data on revenues, costs, and sales to enable a thorough assessment.
It plans to publish an update on pricing trends “as soon as possible,” including analysis of retail spreads (the gap between what drivers pay and benchmark wholesale prices) and fuel margins (the difference between purchase and selling prices).
The CMA noted that while businesses face genuine pressures from rising energy costs, they should not exploit the situation.
The regulator does not set or approve retail prices but has the power to investigate and address anticompetitive behaviour if evidence emerges.
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