Chancellor Rachel Reeves has addressed growing concerns over rising petrol and diesel prices, which have seen fuel costs skyrocket.
The action taken by the Chancellor comes after the price of crude oil peaked at $100 (£75) per barrel following the Middle East conflict.
According to the latest data from the RAC, petrol drivers would risk paying 147.19p per litre, marking the highest rate in almost two years, while diesel prices are at a three-year high.
The all-time fuel price peak came in 2022 after Russia invaded Ukraine, which has now prompted Labour to deal with the growing costs.
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Addressing the House of Commons, Ms Reeves said: "Today I will set out further action that I am taking. The UK has now begun the release of our share of 13 billion barrels of oil. This Government is taking control of our own energy supply.
"I will not tolerate red tape and vested interest holding back our industry. I know that when prices rise and incomes are squeezed, people ask what the Government is doing to help.
"But I know there is more to do. Since my last statement, the Competition and Markets Authority has been working with the Government."
She revealed that the Government would ensure the Competition and Markets Authority has been granted the powers that they need to crack down on price gouging, "bringing in a new anti-profiteering framework and considering time-limited targeted powers for the CMA and other regulators".
READ MORE: Petrol and diesel drivers warned of fuel stations with empty pumps as Iran oil crisis continues
Chancellor Rachel Reeves has announced new measures to crack down on fuel prices
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The Chancellor explained that this week, she, alongside the Business Secretary, will convene the Regulators' Council to discuss their work to protect consumers who have been impacted by rising fuel prices.
She added: "Let me say again, this Government will not tolerate any company exploiting this crisis at consumers' expense.
"We extended the 5p fuel duty cut, and we have pushed out the cheaper fuel finder, empowering people to avoid rip-off prices and chasing down the last few filling stations to reach 100 per cent compliance."
While the Chancellor acknowledged the impact of cost hikes on Britons, she failed to address any immediate remedies during her announcement.
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Petrol and diesel prices peaked across the UK in the aftermath of the Russian invasion of Ukraine in 2022 | PAThe Labour MP for Leeds West and Pudsey added that the Government needed to "learn from the mistakes of the past", before taking direct aim at former Prime Minister Liz Truss.
"The challenges may be significant, but I promise to do what is right and fair, being responsive in a changing world and responsible in the national interest," Ms Reeves said.
Since the Middle East crisis began, the price of diesel has jumped to 171.17p, or 20 per cent in just over three weeks.
Drivers continue to face expensive costs at the pump as the cost of oil remains high | OILPRICE.COMMatt Crole-Rees, motoring expert at Confused.com, comments: "When oil markets become volatile, the effects are often reflected quickly at the pumps, meaning drivers can feel the impact in a short space of time.
"There are also concerns that petrol prices could approach, or even surpass, the previous UK record seen in 2022 if oil costs remain elevated."
The expert urged motorists to avoid panic buying fuel, as this would put "extra pressure" on fuel supplies and lead to disruption at petrol stations.