The Government has already promised to intervene if companies engage in “unfair” practices that would hit customers facing a rise in the price of home heating oil, which is not covered by Ofgem’s energy price cap
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Rachel Reeves has asked the competition watchdog to “crack down” on “rip-off” fuel prices ahead of a meeting with energy bosses to warn against profiteering amid the Iran war.
The Chancellor insisted she “will not tolerate” firms exploiting uncertainty in the Middle East for excess financial gain as concerns grow over its impact on the cost of living.
The Government has already promised to intervene if companies engage in “unfair” practices that would hit customers facing a rise in the price of home heating oil, which is not covered by Ofgem’s energy price cap.
The Treasury has said Ms Reeves and Energy Secretary Ed Miliband will also press petrol retailers and energy suppliers to ensure drivers are not left paying “over the odds” in a Downing Street meeting on Friday.
Ahead of the talks, the Chancellor wrote to the Competition and Markets Authority (CMA) requesting it to stay on “high alert” for “unjustifiable” price hikes, the ministry 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 said.
However, the AA warned that consumers “will be stung” with inevitable rising costs because of a global hike in prices, and called on Ms Reeves to delay a planned increase in fuel duty.
The Chancellor has faced opposition pressure to abandon her decision to gradually raise the levy, starting with a 1p increase from September this year.
Edmund King, president of the motoring organisation, said: “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 since said the Government will keep the situation “under review” in light of the Middle East conflict.
It comes after the CMA warned it was putting fuel retailers “on notice” of plans to step up monitoring of petrol and diesel prices in light of the Middle East conflict.
The watchdog told firms it was bringing forward formal requirements to supply revenue, costs and sales data.
The CMA said it will also consider how quickly fuel prices rise and fall as wholesale costs change and whether there is evidence of so-called rocket and feather pricing.
On Wednesday, the RAC said diesel prices had risen by nearly 9 per cent since February 28.
Petrol prices were on average 6 per cent more across the same period.
The Government has said drivers can compare prices at different petrol stations across the UK through its fuel finder scheme, which has also been welcomed by 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.”