Supermarkets told not to raise prices unfairly

By the Editorial Team · Monday, August 3, 2026

The UK government has committed to closely monitoring supermarket and fuel prices to prevent unjustified hikes linked to the Iran conflict, with Chancellor John Healey warning regulators may intervene if price gouging is detected. This move aims to shield consumers from rising costs amid escalating petrol and diesel prices and potential future increases in food inflation, though specific anti-gouging legislation is still under consideration.

The UK government has pledged to monitor supermarket and fuel prices closely amid concerns over potential exploitation of the ongoing conflict in Iran. Chancellor John Healey signaled that regulators possess the authority to intervene if firms are found to be unjustifiably raising prices due to the geopolitical tensions affecting global energy supplies.

Petrol prices in the UK recently reached 160 pence per litre, marking the highest level since November 2022, following renewed disruptions to shipping routes through the Strait of Hormuz linked to the conflict in Iran. Diesel prices have also risen sharply, increasing by 14.5 pence since early July to 179 pence per litre, although this remains below the April peak of 191.54 pence.

While food price inflation has slowed to 1.7 percent over the past year as of June, industry forecasts suggest inflation could rise to between 4 and 5 percent later this year, reflecting typical delays of up to 13 months in food price adjustments following supply shocks. Supermarkets have reportedly communicated these expectations to the Bank of England.

Healey emphasized his intention to watch for any indications of unfair pricing practices, commonly referred to as price gouging, though he noted that no significant evidence of such behavior has emerged so far. His comments echo those made in May by his predecessor, Rachel Reeves, who outlined a framework for addressing price increases linked to crises, though many of those measures have yet to be implemented.

Reeves proposed several actions that regulators and ministers could take to curb excessive price hikes during emergencies. These include publishing data on profit margins to expose companies benefiting disproportionately from crisis conditions, enhancing cooperation and information sharing among regulatory bodies to identify pricing issues more rapidly, and potentially granting ministers temporary powers to halt and fine firms that raise prices unfairly.

Currently, the UK has no specific legislation defining or prohibiting price gouging as an offense, although existing competition laws address illegal price collusion. The government has indicated that new laws might be introduced to specifically target unfair pricing during crises, but details and timelines remain unclear.

Industry voices have weighed in on the issue as well. In May, Justin King, former chief executive of Sainsbury’s, cautioned that collusive behavior aimed at manipulating prices is illegal under UK competition law. Meanwhile, Andrew Bailey, governor of the Bank of England, highlighted that artificially suppressing prices is not sustainable over the long term.

As tensions in the Middle East continue to influence global markets, the UK government’s commitment to monitoring and potentially curbing excessive price increases aims to protect consumers from undue financial strain during an uncertain period.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.