Britain’s competition regulator has launched an in-depth study to examine concerns about soaring fuel prices.

The Competition and Markets Authority will look at the differences between petrol and diesel prices in rural and urban areas, as well as the growing gap between the price of crude oil when it enters refineries and the wholesale price when it leaves.

In an urgent review published on Friday, the CMA found that although there were concerns about some retailers profiting from the current situation, this was not a big contributor to soaring prices at the pump.

About 40% of the current growth in fuel prices was down to increases in how much refineries are charging retailers for wholesale diesel and gas.

The difference between the cost of crude oil and wholesale prices tripled in the past year from nearly 10p to nearly 35p, the CMA said.

During the same period, the discrepancy between wholesale prices and what consumers pay fluctuated but remained at 10p per litre on average.

Sarah Cardell, CMA general counsel, said: “While there is no escaping the global pressures pushing up fuel prices, the growing gap between the oil price, and the wholesale price of petrol and diesel, is a cause for concern.

Flight cancellation amnesty deadline day could place more services in peril

Johnson ally Lord Grimstone quits role as investment minister

Wine production boom expected as climate crisis recreates Champagne conditions in UK, study predicts

“We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it.

“On the whole the retail market does seem to be competitive, but there are some areas that warrant further investigation.

“These include finding out whether the disparities in price between urban and rural areas are justified.”

She said the CMA will use its formal legal powers to investigate this in more depth, adding: “If evidence emerges of collusion or similar wrongdoing, we won’t hesitate to take action.”

Related posts:

Lloyds plots £400m takeover of savings group Embark Hospitality chiefs urge Sunak to ‘stand ready’ with new support package £1bn NatWest sale takes state closer to minority shareholder status New model shortages drive near-record demand for used cars Davidson Kempner takes stake in ‘buy now pay later’ provider DivideBuy Activist Elliott floats break-up of pharma services group Clinigen Future of LV= thrown into confusion after member vote for £530m takeover by Bain Capital falls short Prices hikes ‘inevitable’ in face of rising costs, warns Currys boss China posts 8.1% growth for 2021 but slowdown signs persist Uber hails ex-British Airways executive Brem as next UK chief Elon Musk drives off with $23bn reward as Tesla price hikes boost quarterly profits Why car insurance costs are predicted to continue climbing as premiums nudge 18-month high