Motorists facing years of high fuel bills as Office of Fair Trading rejects referring petrol market to Competition Commission
Watchdog launched a study last September to investigate accusations of predatory pricing by supermarkets
Motorists are facing years of petrol price misery after the Office of Fair Trading decided not to refer the road fuel market to the Competition Commission.
The watchdog launched a study last September to investigate accusations of predatory pricing by supermarkets. It also examined claims that falls in the price of crude oil are not reflected quickly in pump prices, while price hikes are instantly acted on.
Petrol prices have soared in recent years, almost doubling between 2003 and 2012. The OFT’s study showed that petrol prices climbed from 76p a litre to £1.36 over the nine years and from 78p to £1.42 a litre for diesel.
But the OFT disappointed consumer groups and business organisations by blaming the seemingly relentless series of price hikes on tax and duty hikes.
And as it found no evidence of anti-competitive behaviour, it will not recommend that the issue gets full regulatory scrutiny.
Clive Maxwell, the OFT’s chief executive, said: “We recognise that there has been widespread mistrust in how this market is operating. However, our analysis suggests that competition is working well, and rises in pump prices over the past decade or so have largely been down to increases in tax and the cost of crude oil.”
Brian Madderson, chairman of the Petrol Retailers Association, accused the OFT of letting drivers down. “How can the OFT tell motorists and businesses that the market is working in the consumer’s interests?” he said.
He warned that as a result there will be more independent gas stations closing down, higher fuel prices and a higher risk of transport disruption in a crisis.
The OFT also dismissed claims of ‘rocket and feather’ price fixing, when pump prices rise quickly when the wholesale price goes up but fall more slowly when it drops.
It analysed 12 years’ worth of price data and “found very limited evidence to support such claims”.
The Forum of Private Business was scathing about the report. “We will have to take the findings of the OFT investigation on board that there was little evidence of collusion of price fixing,” said Alex Jackman, head of policy. “It is a difficult finding to swallow, however, given the lag times that seem to exist between wholesale prices dropping and pump prices following which are there for all to see.”
Edmund King, president of motorist organisation the AA, said: “The OFT sees the fuel pricing market as competitive but this clashes with drivers’ frustration on the forecourts. If fuel pricing is fair and competitive, there is no reason not to publish petrol and diesel wholesale prices to prove the point and reassure motorists.”
The OFT did concede that fuel can be significantly more expensive at motorway service stations and has asked the Department for Transport to consider new road signs that would warn motorway drivers of the higher prices they will be charged.
- 1 Bruce Jenner's 'Interview of the year': Suicidal thoughts, rejection by family members and new wardrobe
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
Bruce Jenner's 'Interview of the year': Suicidal thoughts, rejection by family members and new wardrobe
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
£22000 - £40000 per annum: Recruitment Genius: This company is part of a Group...
£16000 - £18000 per annum: Recruitment Genius: Are you a a young, dynamic pers...
Voluntary: Cancer Research UK: We’re looking for someone to support our award ...
£70000 - £90000 per annum + bonus + car allowance + benefits: Ashdown Group: H...