Working people will be protected from unfair price rises with new plans set out by the government today to detect and crack down on companies if they exploit the crisis in the Middle East.
Ministers are concerned that some companies could exploit the crisis to carry out price gouging – when a company puts prices up to an unfair and unjustifiably high level during a crisis, knowing that customer have little choice but to pay. To deal with this unfair practice, a new anti-profiteering framework is being brought in by the Government and regulators like the Competition and Markets Authority (CMA) to clamp down on price gouging if it takes place.
As part of that, the government will not hesitate to introduce new time-limited, targeted powers for the CMA and other key regulators if that is needed, and the exact powers are being worked through at pace. The move will further strengthen our world-class competition and consumer protection regime, which is already protecting households, and comes as the CMA have stepped up their monitoring of fuel prices and accelerated their review of fuel margins made by businesses since the conflict began.
The announcement follows the Chancellor and Energy Secretary’s meeting with petrol retailers to discuss what more can be done to support motorists with the cost of living, and the Chancellor is expected to meet with supermarkets and banks to discuss how they can support consumers in the coming days. A Government spokesperson said: “We are fighting your corner to keep the cost of living down in these uncertain times.
“We will not allow companies to exploit this crisis to hike their prices to unjustifiable levels. Whether at the fuel pump filling up your car or at the till paying for your groceries, we are working with regulators to make sure the price you pay is a fair one.