FINWIRES · TerminalLIVE
FINWIRES

UK Regulator Finds No Evidence of Fuel Price Manipulation But Flags Weak Competition

By

Britain's Competition and Markets Authority has found no evidence that retailers alerted fuel pricing strategies to exploit the Middle East crisis, but warned that lower competition in the sector continues to leave drivers paying more, Reuters reported Monday.

The CMA said elevated wholesale prices linked to the US-Israel war in Iran, which began in February, explain most of the rise in pump prices through March and into April. The regulator said it would closely monitor whether any improvement in supply conditions is passed on to consumers.

"While our analysis shows the rise in wholesale prices is the main reason for higher fuel prices, we remain concerned about weak competition in the sector leaving drivers paying more," CMA chief Sarah Cardell said.

Related Articles

Equities

EU May Keep Russian Oil Price Cap Unchanged to Pressure Moscow

The European Commission may propose keeping the G7 price cap on Russian crude oil unchanged at about $44 per barrel during its July review, as it seeks to limit Moscow's oil revenues despite a recent surge in global energy prices, Reuters reported Monday, citing EU diplomats.The proposal is being discussed as part of the European Union's forthcoming 21st sanctions package against Russia over its war in Ukraine.Western governments introduced the cap in late 2022 to reduce Russia's energy income while avoiding disruptions to global oil markets.Under the system, countries can purchase Russian oil using Western shipping and insurance services only if the crude is sold below the price cap.Reuters reported that the Commission is also considering a proposal to prevent any future price review from raising the cap above $60 per barrel, even if global oil prices remain elevated.

Equities

Market Chatter: EU Weighs Energy Spending Flexibility for Member States Amid Iran War Cost Pressures

The European Commission is considering a plan to allow member states to spend around 0.3% of GDP on energy-related costs outside the EU's fiscal framework, Bloomberg reported, citing people familiar with the discussions.The measure would function as an escape clause similar to the defense carve-out previously granted to member states, with Italy among the strongest advocates for greater fiscal flexibility as it grapples with high energy costs stemming from the Iran War, the report said.Details remain fluid and a final decision has not yet been taken, the report added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Equities

Canada Trade Minister Heads to Washington for USMCA Energy Talks With US Trade Representative

Canada-US Trade Minister Dominic LeBlanc and chief US negotiator Janice Charette are heading to Washington Tuesday to meet US Trade Representative Jamieson Greer, with LeBlanc stressing the importance of maintaining the "highly integrated North American energy market," Bloomberg reported Monday.The visit comes ahead of a Monday deadline for Greer to notify Congress of US intentions for the USMCA review, one month before the July 1 review date.No date has been set for Canada's bilateral trade talks with Washington, even as US and Mexican negotiators began formal discussions last week.Ahead of the Washington trip, LeBlanc and Energy Minister Tim Hodgson met with Canadian oil and gas sector leaders on Monday, focusing on preserving cross-border energy ties that support jobs and energy security on both sides of the border, the report said.About 90% of Canada's crude exports went to the US last year.