Business Secretary Kwasi Kwarteng has called on the UK competition control body to urgently review petrol station operators amid concerns that retailers have not passed on the recent reduction in the tax on fuel.
In a letter to the Competition and Markets Authority (CMA), Kwarteng wrote that people were “concertedly frustrated” that the 5p per liter reduction would not have prevented prices from rising to record levels in the courtyards.
Kwarteng called on the CMA to conduct an urgent review of the fuel market and a long-term study examining the health of competition in the market, to see if it has harmed the interests of consumers amid rising prices.
He noted regional disparities in petrol prices and called for an initial report of recommendations to “strengthen competition” in the petrol market before 7 July.
“Drivers should get fair fuel treatment across the UK,” Kwarteng wrote.
“I am writing to ask the CMA to conduct an urgent review of the fuel market … to explore whether the fuel retail market has adversely affected consumer interests.”
Fuel prices⛽️
I have asked @CMAgovUK to conduct an urgent review of the fuel retail market, as well as a long-term investigation under the Companies Act.
Fuel prices are always rising fast, but falling slowly, let’s see why. pic.twitter.com/iBk8JeNcsF
– Kwasi Kwarteng (@KwasiKwarteng) June 12, 2022
The competition control dog had previously caused Asda and Morrisons to sell a number of yards during private equity acquisitions.
The average price of a liter of petrol in the courtyards of the United Kingdom rose 7p last week, according to data firm Experian Catalist, reaching a new record of 183.2p on Thursday. This increased the cost of filling a typical car above £ 100.
Gasoline retailers have blamed the rise in wholesale prices, saying oil refineries had not affected the fall in crude oil prices since the highs of the first days of the war in Ukraine.
Jack Cousens, the head of AA’s road policy, welcomed the Kwarteng movement, but called for “more urgent action”.
“To relieve the pressure on the pumps, we need an immediate 10p reduction in fuel,” he argued.
“In the longer term, the CMA should consider extending the transparency of the pump price available in Northern Ireland to the rest of the UK. enjoy the lowest fuel prices in the UK, ”Cousens said.
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Unions and drivers have warned that a record rise in fuel prices could force their vehicle-dependent staff to work to quit, including essential workers.
A community NHS worker said the increase in the price of fuel had exceeded the reimbursement made for gasoline costs, so staff now paid not only to go to work, but also to drive to patients’ homes to do their work.
Rising gasoline prices have led to an increase in the number of drivers trying to leave without paying, with an average of three robbery attempts a day, according to Forecourt Eye figures.