The Competition and Markets Authority (CMA) is set to play a more active role in overseeing fuel prices as amendments to the Digital Markets, Competition and Consumers Bill grant the authority new powers.
The CMA will closely examine road fuel prices, requiring transparency from retailers.
Non-compliance may result in penalties, including fines of up to 5% of daily turnover for fuel businesses.
Energy Security Secretary Claire Coutinho said: “At a time when many were struggling with increased living costs, we saw shocking behaviour from some fuel retailers who failed to pass on savings at the pump.
“Now we are cracking down on any petrol station bosses found to be unfairly hiking up their prices.
“That’s why we’re giving the CMA new powers to bring fairness back to the forecourts and make sure UK drivers get a competitive fuel price.”
Sarah Cardell, Chief Executive of the CMA, said: “We welcome this new responsibility and will use it to hold fuel retailers to account. The CMA is determined to revitalise competition in this sector so drivers can be confident they are getting the best price possible when they fill up their vehicles.”
