Britain’s competition regulator has launched an in-depth study to examine concerns about soaring fuel prices.
The Competition and Markets Authority will look at the differences between petrol and diesel prices in rural and urban areas, as well as the growing gap between the price of crude oil when it enters refineries and the wholesale price when it leaves.
In an urgent review published on Friday, the CMA found that although there were concerns about some retailers profiting from the current situation, this was not a big contributor to soaring prices at the pump.
About 40% of the current growth in fuel prices was down to increases in how much refineries are charging retailers for wholesale diesel and gas.
The difference between the cost of crude oil and wholesale prices tripled in the past year from nearly 10p to nearly 35p, the CMA said.
During the same period, the discrepancy between wholesale prices and what consumers pay fluctuated but remained at 10p per litre on average.
Sarah Cardell, CMA general counsel, said: “While there is no escaping the global pressures pushing up fuel prices, the growing gap between the oil price, and the wholesale price of petrol and diesel, is a cause for concern.
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“We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it.”
She said the retail market “does seem to be competitive” on the whole, but there are some areas that “warrant further investigation”.
“These include finding out whether the disparities in price between urban and rural areas are justified,” she said.
She said the CMA will use its formal legal powers to investigate this in more depth, adding: “If evidence emerges of collusion or similar wrongdoing, we won’t hesitate to take action.”
