Keir Starmer’s own cost of living adviser has urged ministers to consider a temporary cap on energy and petrol profits as the Iran-driven price shock hits consumers.
Richard Walker has called for a short-term intervention to stop firms cashing in on surging oil and fuel prices linked to disruption in the Strait of Hormuz, warning the crisis risks deepening the cost-of-living squeeze.
He said he had asked the government to look at limiting how much companies can earn during periods of extreme volatility, arguing that while profit is essential, excessive gains during a crisis should be curbed.
“I have asked the government to consider a temporary profit cap… to stop producers and retailers exploiting the crisis to make windfall profits at the expense of consumers,” he wrote in the Sunday Times.
Walker made clear the proposal is not a permanent price control but a targeted measure designed for exceptional conditions.
He said: “I have no problem with profit… but I do have a big problem with profiteering, especially when families are under real pressure.”
The intervention would go further than the existing windfall tax on North Sea producers, potentially applying across the supply chain including retailers.
The idea is gaining traction as oil prices surge above $100 and petrol prices rise sharply, fuelling concerns over inflation and household costs.
Officials have not committed to the policy but discussions are ongoing inside government, with ministers under growing pressure to act if the crisis drags on.
Copyright © 2026 Energy Live News LtdELN