Rachel Reeves will order fuel bosses to give drivers a fair price at the pumps in a summit today.
The Chancellor will tell petrol retailers and energy suppliers that she will ‘not tolerate’ them profiteering as a result of the Middle East crisis.
She has written to the Competition and Markets Authority (CMA) demanding it crack down on rip-off prices for petrol, diesel and heating oil.
Her intervention came as fuel prices continue to surge as Iran‘s new leader vowed to continue to block the Strait of Hormuz.
The Chancellor is under pressure to cancel the planned fuel duty rise from September with Sir Keir Starmer saying it will be kept ‘under review’.
Today, Ms Reeves and Energy Secretary Ed Miliband will meet fuel bosses to ask what the chiefs are doing to keep prices down for consumers.
They will question them about why prices vary – from £1.27 to £1.80 per litre this week – and how quickly they will pass on lower costs if prices fall.
Ahead of the meeting, Ms Reeves 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.’
Rachel Reeves will tell fuel bosses she will ‘not tolerate’ profiteering as a result of the Middle East crisis
Ministers will demand petrol retailers sign up to ‘Fuel Finder’, a website to help drivers find the cheapest nearby forecourt.
All major supermarkets have signed up and more than 90per cent of retailers have registered.
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.’
Following Ms Reeves’s intervention, the CMA said it had put fuel retailers ‘on notice’ that it is monitoring petrol and diesel prices.
It said it would bring forward formal requirements to supply revenue, costs and sales data.
The watchdog said the move would speed up its review of fuel margins made by businesses since the conflict began.
It said it will also consider how quickly fuel prices rise and fall as wholesale costs change and whether there is evidence of excess pricing.
While it recognised that rising energy costs could affect prices, it said fuel stations ‘should not exploit the situation’, adding that any evidence of this would be made clear in its update on pricing, ‘which will be published as soon as possible’.
The CMA’s executive director for markets, Juliette Enser, said: ‘Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures.
‘We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.’
On Wednesday, the RAC said diesel prices had risen by nearly nine per cent since February 28.
Petrol prices were on average six per cent more across the same period.
RAC head of policy Simon Williams said: ‘Drivers tell us the cost of motoring is a major concern, and fuel is a huge contributor to that, so making sure they’re paying a fair price at the pumps is essential.
‘For that reason, we welcome the competition watchdog’s scrutiny of what’s happening on forecourts across the country.
‘RAC fuel watch data shows average prices have rocketed in under two weeks, with the average price of petrol increasing by 7p to 140p a litre and diesel by 16p to 158p. This has added £4 and £8 to the cost of filling up a family car.’
