The Competition and Markets Authority (CMA) has been asked to investigate whether petrol stations are giving motorists a fair deal.
Responsible for regulating competition across the UK, the CMA has been urged to act by Business Secretary Kwasi Kwarteng.
It follows the Government’s reduction in fuel duty by 5p per litre earlier this year, in response to rapidly rising prices for petrol and diesel.
Drivers deserve a fair deal
In a letter to the CMA’s Chief Executive, Dr Andrea Coscelli CBE, the Business Secretary notes that drivers are frustrated by fuel prices still increasing.
Kwarteng says that the fuel duty cut “does not always appear to have been passed through to forecourt prices.
“Drivers should be getting a fair deal for fuel across the UK.
“Healthy competition between forecourts is key to achieving this, with competition working to keep pressure on prices.”
It asks that an urgent review be conducted into why disparities remain between fuel providers, and how prices can “remain higher than in similar, nearby towns”.
However, the CMA will also be tasked with conducting a larger, longer-term, review into how the fuel market operates in the UK. This will be performed under the Enterprise Act 2002.
Time is of the essence for drivers
As part of this larger review, the CMA is tasked with discovering if “the retail fuel market has adversely affected consumer interests” in the UK. It will be asked to consider whether there are any additional steps the Government, or the CMA itself, could take to help.
An initial report into fuel prices has been requested from the CMA by 7 July 2022.
The report request comes as fuel prices have crossed an ominous milestone. Last week saw the RAC report that the average cost of filling a family car has passed the £100 mark.
RAC fuel spokesperson Simon Williams said: “March’s 5p fuel duty cut now looks paltry as wholesale petrol costs have already increased by five-times that amount since the Spring Statement”.
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