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Why Reeves’s claims of petrol profiteering don’t stack up
Yahoo Finance· 2026-03-24 15:16
Group 1 - The UK Chancellor Rachel Reeves is targeting petrol station operators to address concerns over rising fuel prices amid the ongoing conflict in the Middle East, aiming to combat "price-gouging" and "profiteering" [1][2] - The price of crude oil has significantly increased due to the conflict, rising from around $70 to nearly $120 per barrel before settling around $100, impacting petrol and diesel prices at the pump [4] - Wholesale petrol prices increased by 17.6p per litre, while retail prices rose by only 13.5p during the same period, indicating that petrol stations are not excessively overcharging consumers [5][6] Group 2 - The slower pass-through of wholesale costs to retail prices suggests that fuel companies are not exploiting the crisis to raise prices, with larger chains able to secure better deals from wholesalers [6] - The government takes a larger share of the price at the pump compared to other entities involved in fuel supply, which affects the overall pricing structure [7] - Smaller petrol operators often have to implement higher prices immediately due to less favorable purchasing conditions compared to larger chains [8]