Government aims to keep costs down for drivers as Iran crisis continues

The government is meeting with petrol retailers and energy suppliers to make sure drivers aren’t paying over the odds at the pump.

As the conflict in Iran forces oil prices upwards, ministers are worried that it could lead to motorists being hit in the pocket.

So chancellor Rachel Reeves and energy secretary Ed Miliband are meeting with industry stakeholders today (13 March) to push the message that drivers shouldn’t be ripped off.

Sector bosses will also be asked to explain: 

• why prices can vary significantly between petrol stations
• how quickly forecourts reduce prices when wholesale costs fall
• what steps companies are taking to ensure drivers aren’t paying over the odds

In addition, the chancellor has asked the Competition and Markets Authority (CMA) to stay on high alert for “unjustifiable” price rises on petrol, diesel and heating oil.

“I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense,” said Reeves. 

“I’m backing drivers and families and I expect a fair deal at the pump.” 

New rules will help motorists spend less

The government is also working to ensure all major fuel retailers are signed up to its fuel finder service.

Under the scheme, garages and petrol stations must report their prices to the government, so drivers can easily find the cheapest fuel in real-time on comparison apps like PetrolPrices, their satnav and online maps.

All major supermarkets are now providing real-time data to the fuel finder scheme and almost 90% of retailers have already registered.

But the government has now confirmed it’s “taking action on the final 10%”. 

“All fuel retailers must sign up for fuel finder so drivers can find the cheapest price at the pump,” the energy secretary said.

“We will not hesitate to act to protect consumers against any unfair practices.”

Ministers hope the fuel finder service could help drivers save up to £40 a year.

CMA closely monitoring petrol and diesel prices

The CMA, meanwhile, has confirmed it will “step up” monitoring of petrol and diesel prices across the country.

Specifically, it wants to make sure fuel stations aren’t exploiting the situation by charging customers more than necessary.

“Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures,” said Juliette Enser of the CMA.

“We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”

How to save money at the pumps

While we can’t control global oil markets, we can take steps to reduce how much we spend.

So we’ve put together some tips on how to cut your fuel costs, such as driving more efficiently and avoiding motorway service stations.

None of us know how long the situation in the Middle East will last, so it pays to look at how you drive and where you fill up to save a few pennies.