The Competition and Markets Authority (CMA) has warned fuel retailers it is stepping up its monitoring of petrol and diesel prices, citing concerns around profiteering as the US-Israel conflict with Iran drives up wholesale costs.

The UK’s competitions regulator said that firms responsible for thousands of fuel stations across the country have been “put on notice” that formal requirements to supply revenue, costs and sales data will be brought forward.

When the data is available, the CMA said it would also consider how quickly fuel prices rise and fall as wholesale costs change, and whether there is evidence of what it describes as “rocket and feather” pricing – an economic trend where retail prices rise quickly when costs such as oil increase, but fall slowly when those costs decrease.

Under the CMA’s responsibilities, the regulator aims to tackle unfair behaviour while promoting competitive markets. It does not however set or approve retailers’ fuel prices.

The CMA acknowledged that businesses across the economy are likely to face significant pressures from rising energy costs, which it warned may impact prices.

However, it also said that fuel stations should “not exploit the situation” and warned that any evidence of this will be made clear in the regulator’s update on pricing, which it plans to publish as soon as possible.

“Whilst price increases might be inevitable because of rising wholesale costs, it is important that those increases reflect genuine cost pressures,” executive director for markets at the CMA, Juliette Enser, said.

“We will be closely scrutinising and reporting on what’s happening with fuel prices and call out any concerning behaviour.”

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