Periods of global instability often place pressure on supply chains and pricing, particularly in sectors such as energy and fuel. Recent geopolitical tensions and their impact on oil and energy markets have brought renewed attention to the issue of price gouging, where prices rise sharply in ways that may not be fully explained by underlying cost increases.
In response, the UK government has announced a series of measures aimed at protecting consumers and ensuring markets continue to function fairly. While much of the focus is on energy pricing, the broader message is relevant for businesses across many sectors.
What is price gouging?
Price gouging is generally understood to occur when prices increase significantly beyond what can reasonably be justified by changes in supply, demand or input costs. It often becomes more visible during periods of disruption, where uncertainty reduces consumer choice and market conditions are less predictable.
Energy markets are particularly sensitive to global events, and oil and gas prices can react rapidly to geopolitical developments. During these periods, pricing behaviour can come under closer scrutiny.
The government’s proposed approach
In March 2026, the Chancellor set out plans for an anti profiteering framework that would allow regulators to intervene more quickly where excessive or unfair pricing is suspected. Under the proposals, the Competition and Markets Authority may be granted targeted, time limited powers to investigate and address sharp price increases where evidence suggests markets are not operating competitively.
To read more about the framework click here
The government has indicated that it will act where pricing appears to exploit uncertainty linked to international conflict or supply issues, particularly in areas such as energy and fuel where consumers have limited alternatives.
Longer term measures for stability
Alongside enforcement, the government has also signalled its intention to tackle some of the structural causes of price volatility. This includes accelerating investment in domestic energy generation, particularly nuclear power, and reviewing selected import tariffs to help reduce pressure on household and business costs.
These measures are aimed at improving energy security over the long term, reducing reliance on volatile global markets and limiting the frequency of sudden price spikes.
Increased monitoring and transparency
Regulators are already increasing monitoring of fuel and heating oil markets, with enforcement action expected where breaches of consumer protection rules are identified. Improved transparency around pricing is expected to play an important role in discouraging opportunistic behaviour and maintaining confidence in market fairness.
What this means for businesses
For businesses, the key message is the importance of having pricing strategies that are commercially justifiable and capable of explanation if questioned. Sudden increases in margins during periods of market stress may attract regulatory attention, particularly where customers have limited choice.
Clear documentation, consistent pricing policies and a good understanding of cost drivers can help businesses demonstrate that pricing decisions are reasonable and defensible.
Ollie Squire – Partner at The Mgroup Partnership
“One thing we encourage businesses to think about is how their decisions would look if they needed to explain them externally. In times of uncertainty, transparency and consistency matter more than ever not just to regulators, but to customers as well.”
Reassurance for consumers
For consumers, the proposed framework provides reassurance that the government intends to act where markets fail to operate competitively. Over time, improved energy security and more active regulatory oversight may help smooth price volatility and reduce the impact of sudden shocks.
Our approach
At The MGroup, our role is to help businesses navigate change with clarity and confidence. By combining technical expertise with practical, supportive advice, we work with clients to ensure decisions are commercially sound, compliant and aligned with long‑term objectives.
If you would like to discuss how pricing, cost pressures or regulatory developments may affect your business, we’d be happy to arrange a no obligation conversation, contact us here