New rules to tackle ‘unfair’ price rises

Companies could be named and shamed for ripping off customers following an economic shock.

The government is concerned that some firms are raising prices excessively and unfairly when global events hit the economy.

So it’s putting tougher measures in place to tackle the problem.

What’s changing?

Under the new rules, the Competition and Markets Authority (CMA) and other watchdogs will be able to name and shame firms if they identify “concerning practices”.

They’ll also be able to publicly share each individual firm’s reasons for changing their margins.

“When global events drive up costs, working families feel it first,” said chancellor Rachel Reeves.

“I will not tolerate anyone exploiting a crisis to make a quick buck off the back of hard-working people.”

Government could go further

The chancellor hasn’t ruled out putting even tougher rules in place if necessary, such as giving the CMA and other regulators the power to impose penalties.

If the relevant watchdogs believe they need more powers to tackle price gouging in an emergency, the government it says it’s “ready to act”.

CMA closely monitoring petrol and diesel prices

With oil prices rising because of the US-Israel war with Iran, the CMA is already closely monitoring petrol and diesel prices to make sure fuel stations aren’t exploiting the situation.

“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.”