OFT Issues Call for Information into Petrol and Diesel Prices
The Office of Fair Trading (OFT) has demanded information on the UK petrol and diesel sector.
The UK retail road fuels sector is estimated to be worth around £32 billion. Petrol prices rose by 38 per cent between June 2007 and June 2012, and diesel prices by 43 per cent over the same period.
In light of continuing public concern about pump prices, the OFT wants to identify whether or not there are competition problems that it can tackle in the sector. It is inviting the industry, motoring groups and consumer bodies to submit information.
The OFT will explore a number of claims about how the road fuels sector in the UK is functioning, including:
whether reductions in the price of crude oil are being reflected in falling pump prices
whether supermarkets’ and major oil companies’ practices may be making it more difficult for independent retailers to compete with them
whether there is a lack of competition between fuel retailers in some remote communities in the UK, and
whether concerns about price co-ordination and the structure of road fuels markets identified by other national competition authorities are relevant in the UK.
Claire Hart, Director in the OFT’s Services, Infrastructure and Public Markets Group, said: “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.
“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.”
The OFT will be gathering information over the next six weeks, and plans to publish its findings in January 2013.