The Middle East crisis has added as much as 50p a litre to UK diesel prices and 26p to petrol since February, with the competition watchdog saying the surge has been driven mainly by higher oil costs rather than widespread profiteering at the pumps.

New monitoring from the Competition and Markets Authority found petrol and diesel prices rose sharply between February and 20 April – as conflict in the region rattled global energy markets and pushed crude prices higher.

Despite fears motorists were being overcharged, the CMA said average retail fuel margins across the market were broadly unchanged.

Margins stood at 10.3p a litre in February and 10.7p in March, in line with the 2025 average.

That suggests most of the latest jump has come from wholesale cost pressures rather than a general increase in retailer mark-ups.

However the watchdog did identify some individual retailers whose margins rose in March and said it is now investigating the reasons. A further update will be included in its May report.

Sarah Cardell Chief Executive of the CMA said: “The conflict in the Middle East has driven sharp increases in road fuel prices putting real pressure on households and businesses across the UK. We will remain vigilant to ensure any fall in costs is passed on quickly to motorists.”

The CMA also said fuel margins remain historically high overall reflecting long standing concerns that competition in the forecourt market is weaker than it should be.

Drivers are being urged to shop around. The regulator said significant local price differences mean savings of up to £9 a tank are possible for petrol or diesel users who compare forecourt prices.

That is where the new Fuel Finder scheme comes in. The system requires retailers to publish up to date pump prices so apps and comparison services can help motorists find cheaper fuel nearby.

The CMA said it has now begun enforcement action against firms failing to sign up or provide accurate data. Warning letters have already been sent to hundreds of forecourts.