Rachel Reeves has addressed the rising prices of petrol and diesel, which have surged following crude oil reaching $100 (£75) a barrel amid the ongoing conflict in the Middle East.
According to data from the RAC, petrol prices could rise to 147.19p per litre, the highest level seen in nearly two years, while diesel prices are currently at a three-year high.
The Chancellor announced that the government would empower the Competition and Markets Authority to tackle price gouging by introducing a new anti-profiteering framework and considering time-limited targeted powers for regulators.
Reeves said: “Today I will set out further action that I am taking. The UK has now begun the release of our share of 13 billion barrels of oil. This Government is taking control of our own energy supply.
I will not tolerate red tape and vested interest holding back our industry. I know that when prices rise and incomes are squeezed, people ask what the Government is doing to help.
“But I know there is more to do. Since my last statement, the Competition and Markets Authority has been working with the Government.
Reeves said the government will ensure the Competition and Markets Authority has the power to stop price gouging by “bringing in a new anti-profiteering framework and considering time-limited targeted powers for the CMA and other regulators.
She added: “Let me say again, this Government will not tolerate any company exploiting this crisis at consumers’ expense.
We extended the 5p fuel duty cut, and we have pushed out the cheaper fuel finder, empowering people to avoid rip-off prices and chasing down the last few filling stations to reach 100 per cent compliance.
Reeves stated that she would meet with the Regulators’ Council this week, alongside the Business Secretary, to review consumer protections. However, she did not announce any immediate solutions for households facing higher fuel costs.
Matt Crole-Rees, expert at Confused.com, said: “When oil markets become volatile, the effects are often reflected quickly at the pumps, meaning drivers can feel the impact in a short space of time.
There are also concerns that petrol prices could approach, or even surpass, the previous UK record seen in 2022 if oil costs remain elevated.”
