The price of petrol and diesel will be investigated by the UK's fair trading watchdog to find out whether a fall in oil prices is being passed on to motorists.
The Office of Fair Trading (OFT) has asked for the fuel industry, motoring groups and consumer bodies to provide information amid continuing concerns that drivers are paying too much.
Between June 2007 and June 2012, petrol prices rose by 38% and diesel prices increased by 43%.
The OFT said its review will also address competition issues and worries about price co-ordination.
"We are keenly aware of continuing widespread concern about the pump price of petrol and diesel and we have heard a number of different claims about how the market is operating," said Claire Hart, a director at the OFT.
"We have therefore decided to take a broad based look at this sector, to provide an opportunity for people to share their concerns and evidence with us.
"This will help us determine whether claims about competition problems are well-founded and whether any further action is warranted."
A Department for Transport spokesman welcomed the investigation.
"Many motorists are concerned about fuel prices and that when crude oil pricesfall, this isn't seen at the pump as quickly as consumers would like," they said.
While the president of the AA motoring group, Edmund King, described the review as "overdue".
"The AA will co-operate fully and we see this investigation as absolutely key to getting a fair fuel price in the UK," he said.
"Few drivers feel we have that at the moment."
The OFT, which estimates the retail road fuels sector to be worth around £32bn, said it would publish its findings in January next year.