On Wednesday, the RAC reported that diesel prices had climbed by almost 9% since 28 February. Petrol prices had increased on average 6% over the identical timeframe
Ed Miliband has urged drivers to sign up for one specific app to help find the cheapest fuel prices.
Rachel Reeves made it clear she “will not tolerate” companies exploiting Middle Eastern instability for excessive profits as anxieties mount over its effect on household budgets. The Government has already pledged to step in should firms resort to “unfair” tactics that would hammer customers grappling with rising home heating oil costs, which fall outside Ofgem’s energy price cap protection.
The Treasury confirmed Ms Reeves and Energy Secretary Ed Miliband will also challenge petrol retailers and energy providers to guarantee motorists aren’t left forking out “over the odds” during Friday’s Downing Street summit.
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Prior to the discussions, the Chancellor penned a letter to the Competition and Markets Authority (CMA) demanding it remain on “high alert” for “unjustifiable” price surges, the department revealed.
“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 declared.
Nevertheless, the AA cautioned that consumers “will be stung” with unavoidable escalating costs due to worldwide price increases, and urged Ms Reeves to postpone a scheduled fuel duty rise. The Chancellor has come under mounting opposition pressure to scrap her plans to gradually wind down a 5p reduction to the levy, beginning with a 1p rise from September onwards.
Edmund King, president of the motoring organisation, warned: “As the conflict in the Middle East continues, the global increase in oil prices will hurt inflation, particularly with the diesel price hikes. As most goods and services are delivered by diesel vehicles, this will lead to price rises which the consumer will be stung with.
“We strongly encourage the Chancellor to delay the staggered reintroduction of the 5p fuel duty discount in order to offer some breathing space for hard-pressed households.”
Prime Minister Sir Keir Starmer has subsequently indicated the Government will keep the situation “under review” given the ongoing Middle East conflict. This follows the CMA’s warning that it was placing fuel retailers “on notice” regarding plans to intensify scrutiny of petrol and diesel prices amid the Middle East turmoil.
The watchdog informed companies it was fast-tracking formal requirements for them to provide revenue, costs and sales figures. The CMA confirmed it will also examine how rapidly fuel prices climb and drop as wholesale costs fluctuate, and whether there’s evidence of the notorious rocket and feather pricing phenomenon.
On Wednesday, the RAC reported diesel prices had climbed by almost 9% since 28 February. Petrol prices had increased on average 6% over the identical timeframe. The Government has stated that motorists can check prices at various petrol stations nationwide via its fuel finder scheme, which has received backing from the AA.
Mr Miliband said: “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.”
The Conservatives argued that the Chancellor possesses the authority to alleviate cost-of-living pressures through policy adjustments but is neglecting to do so.
Shadow transport secretary Richard Holden said: “She could cancel the fuel duty rise, she could cut the taxes piled on to energy, she could stop piling costs on to the price of fuel – but she isn’t doing anything because she doesn’t have the backbone. A 5p-per-litre duty increase at the pump will hit commuters, families, and small businesses already under pressure from the cost of living and Labour’s tax hikes.
“The latest developments in the Middle East make it even more important that the Chancellor thinks again.”
