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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jan/30/oft-rules-out-petrol-prices-inquiry
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| OFT rules out petrol prices inquiry | OFT rules out petrol prices inquiry |
| (35 minutes later) | |
| Rising petrol prices will continue to be a headache for cash-strapped motorists after the consumer watchdog concluded the UK fuel market is working well. | Rising petrol prices will continue to be a headache for cash-strapped motorists after the consumer watchdog concluded the UK fuel market is working well. |
| The announcement from the Office of Fair Trading will be a bitter blow to motoring groups who had hoped it would open a full-scale industry inquiry. | The announcement from the Office of Fair Trading will be a bitter blow to motoring groups who had hoped it would open a full-scale industry inquiry. |
| Instead, announcing its conclusions from a four-month investigation, the OFT said it had found no evidence of unfair marketing or trading between oil companies and retailers. | Instead, announcing its conclusions from a four-month investigation, the OFT said it had found no evidence of unfair marketing or trading between oil companies and retailers. |
| It said the market was working well and an increase in average petrol prices from 76p a litre in 2003 to 136p a litre in 2012 was caused largely by rising oil prices and duty. | It said the market was working well and an increase in average petrol prices from 76p a litre in 2003 to 136p a litre in 2012 was caused largely by rising oil prices and duty. |
| "Our call for information has not identified any evidence of anti-competitive behaviour in the fuel market at a national level, where competition appears to be strong," said OFT chief executive Clive Maxwell. | "Our call for information has not identified any evidence of anti-competitive behaviour in the fuel market at a national level, where competition appears to be strong," said OFT chief executive Clive Maxwell. |
| "There may be some issues at a local level. Where we receive evidence of potential anti-competitive behaviour we will consider taking action." | "There may be some issues at a local level. Where we receive evidence of potential anti-competitive behaviour we will consider taking action." |
| The OFT said it found fuel was often significantly more expensive at motorway service stations. It said that in August 2012 service station prices were on average 7.5p a litre higher for petrol and 8.3p a litre higher for diesel than at other UK forecourts. | The OFT said it found fuel was often significantly more expensive at motorway service stations. It said that in August 2012 service station prices were on average 7.5p a litre higher for petrol and 8.3p a litre higher for diesel than at other UK forecourts. |
| As a result it has asked the Department for Transport to consider introducing new road signs that would display service station petrol and diesel prices for motorway drivers. | As a result it has asked the Department for Transport to consider introducing new road signs that would display service station petrol and diesel prices for motorway drivers. |
| Commenting on the OFT's findings, television presenter-turned-fuel campaigner Quentin Willson, representing FairFuelUK, said: "UK consumers will be bitterly disappointed; the nation will feel let down. Quite frankly I am shocked. Every motorist and business in Britain instinctively knows that 'something's not right'." | Commenting on the OFT's findings, television presenter-turned-fuel campaigner Quentin Willson, representing FairFuelUK, said: "UK consumers will be bitterly disappointed; the nation will feel let down. Quite frankly I am shocked. Every motorist and business in Britain instinctively knows that 'something's not right'." |
| He added: "The OFT appears to have failed to address the key issues of: why diesel is more expensive than unleaded in the UK when this is not the case in Europe; why falls in the oil price take so long to be reflected at the pump; and why there are such variations in price, often from the same branded forecourts within the same area." | He added: "The OFT appears to have failed to address the key issues of: why diesel is more expensive than unleaded in the UK when this is not the case in Europe; why falls in the oil price take so long to be reflected at the pump; and why there are such variations in price, often from the same branded forecourts within the same area." |
| Both the AA and Green Flag described the findings as a "disappointment". The AA said the OFT had missed an opportunity to insist on the publication of wholesale prices. | Both the AA and Green Flag described the findings as a "disappointment". The AA said the OFT had missed an opportunity to insist on the publication of wholesale prices. |
| "Since 2005, we have campaigned for the wholesale price to be made transparent so drivers can see whether pump price movements are a fair reflection of costs," said Edmund King, the AA's president. "We continue to hold that view and will push hard for that to happen." | "Since 2005, we have campaigned for the wholesale price to be made transparent so drivers can see whether pump price movements are a fair reflection of costs," said Edmund King, the AA's president. "We continue to hold that view and will push hard for that to happen." |
| He added: "The OFT is not ruling out action at local level and its call for motorway fuel price signs could bring more competition. But drivers deserve a better explanation of why prices fluctuate wildly and who is driving this – from the pump back to the well." | He added: "The OFT is not ruling out action at local level and its call for motorway fuel price signs could bring more competition. But drivers deserve a better explanation of why prices fluctuate wildly and who is driving this – from the pump back to the well." |
| The OFT said it had looked at the idea of "rocket and feather pricing" – the widely held perception that pump prices rise quickly when the wholesale price goes up but fall more slowly when it drops – but had concluded there was "very limited evidence" to support such claims. | The OFT said it had looked at the idea of "rocket and feather pricing" – the widely held perception that pump prices rise quickly when the wholesale price goes up but fall more slowly when it drops – but had concluded there was "very limited evidence" to support such claims. |
| />It also looked at independent dealers' ability to compete fairly in the market. The big four supermarkets have increased their share of road fuel sold in the UK from 29% in 2004 to 39% in 2012, and greater buying power has allowed them to sell fuel more cheaply than competitors. | |
| In August 2012, the OFT said, the average price of petrol at supermarkets was 2p a litre cheaper than the average at oil company-owned sites and 4.3p a litre cheaper than the average charged by independent dealers. | In August 2012, the OFT said, the average price of petrol at supermarkets was 2p a litre cheaper than the average at oil company-owned sites and 4.3p a litre cheaper than the average charged by independent dealers. |
| However, the OFT concluded it had not, "to date, received evidence of any anti-competitive practices being used against independent dealers that might lead it to take enforcement action." | However, the OFT concluded it had not, "to date, received evidence of any anti-competitive practices being used against independent dealers that might lead it to take enforcement action." |
| According to website PetrolPrices.com the average price of unleaded petrol at the pump is now 133.62p a litre and 141.08p a litre for diesel. However, there are vast regional variations on this. | According to website PetrolPrices.com the average price of unleaded petrol at the pump is now 133.62p a litre and 141.08p a litre for diesel. However, there are vast regional variations on this. |
| One garage in London is charging 149.9p for unleaded petrol, according to PetrolPrices, while the cheapest garages are charging 127.9p. For diesel the highest price, charged by a garage in Invernessshire, is 158.9p a litre, while the lowest is 135.9p. | One garage in London is charging 149.9p for unleaded petrol, according to PetrolPrices, while the cheapest garages are charging 127.9p. For diesel the highest price, charged by a garage in Invernessshire, is 158.9p a litre, while the lowest is 135.9p. |