Price review for petrol and diesel launched by the OFT

Price review for petrol and diesel launched by the OFT

The Office of Fair Trading (OFT) is putting the UK petrol and diesel industry under scrutiny in the midst of soaring prices at fuel stations and complaints from thousands of motorists.

With reductions being made to the price of crude oil, the OFT will be looking into whether these cuts are being reflected correctly in the price of fuel. Their six week review will also be gathering evidence into possible lack of competition in the market. Big oil companies and supermarkets who offer fueling stations may be making it hard for the independent fuel retailer to compete in the marketplace. It it due to publish it's findings in January 2013.

The price has petrol has risen by 38 per cent between 2007 and 2012, whilst the price of diesel has increased by 43 per cent over the same timeframe. In June this year the government said it would delay a 3 pence per litre price rise originally scheduled to be introduced in August, and wait until January 2013 to bring it in. The retail road fuel market in the UK is thought to be worth over £32 billion.

A director of OFT, Claire Hart, has 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."

A huge proportion of the fuel price paid by motorists is government tax, and this will not be investigated by the review. Proportionate feelings about fuel prices in other countries such as Spain, Australia and Germany have brought similar examinations.

Average pump price for unleaded petrol in July 2012 was 132.7 pence per litre, whilst for diesel during the same month, average price was 138.4p pence per litre.

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