Business Secretary Kwasi Kwarteng has asked the British Competition Authority to conduct an urgent inspection of petrol station operators, amid fears that retailers have not passed on the recent reduction in fuel tariffs.
In a letter to the Competition and Markets Authority (CMA), Quarteng wrote that people were “rightly disappointed” that the 5 pence reduction per liter had not stopped prices from rising to record levels in front yards.
Kwarteng asked the CMA to conduct an urgent review of the fuel market and a longer-term study that will examine the health of competition in the market to see if it has harmed consumers’ interests amid rising prices.
He noted regional differences in petrol prices and called for an initial report with recommendations for “increasing competition” in the petrol market by 7 July.
“Drivers need to get a fair deal on fuel in the UK,” Quarteng wrote.
“I am writing to ask the CMA to carry out an urgent review of the fuel market … to examine whether the retail fuel market has adversely affected the interests of consumers.
Fuel prices⛽️
I asked @CMAgovUK to conduct an urgent review of the retail fuel market, as well as a longer-term investigation under the Enterprise Act.
Fuel prices are always rising fast, but falling slowly – let’s see why. pic.twitter.com/iBk8JeNcsF
– Kwasi Kwarteng (@KwasiKwarteng) June 12, 2022
Earlier, the competition authority had led Asda and Morrisons to sell a number of front yards during the acquisition of private investment.
The average price of a liter of petrol in the UK’s front yard rose 7 pence last week, according to data firm Experian Catalist, reaching a new record of 183.2 pence on Thursday. This pushed the cost of filling a typical car over £ 100.
Gasoline retailers have blamed the rise in wholesale prices, saying oil refineries have not ignored the drop in crude oil prices from the tops during the first days of Ukraine’s war.
Jack Cousins, AA’s head of road policy, welcomed Quarteng’s move, but called for “more urgent action”.
“To relieve the pressure in the pumps, we need an immediate reduction of 10p for fuel,” he argued.
“In the long run, the CMA should consider extending the transparency of pump prices available in Northern Ireland to the rest of the United Kingdom. “The Consumer Council’s fuel price check has stimulated competition and made drivers there enjoy the lowest fuel prices in the UK,” Causens said.
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Unions and drivers have warned that record increases in fuel prices could force workers who rely on their work vehicles to leave, including key workers.
One NHS employee in the community said that the rise in fuel prices has exceeded the reimbursement they were given for petrol costs, so staff now pay not only to get to work but also to drive to patients’ homes. to get the job done.
Rising gasoline prices have led to an increase in the number of drivers trying to go without paying, with front yards facing an average of up to three thefts per day, according to Forecourt Eye.
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