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Petrol pump competition is fair, OFT decides

Wed, 30th Jan 2013 14:35

Competition at petrol stations is fair, the Office of Fair Trading (OFT) announced Wednesday.In an call for information launched in September last year, the OFT determined that competition at the pump is "working well", and blamed the increases in petrol and diesel over the past 10 years on rising crude oil costs, as well as tax hikes. The OFT found that, pre-tax, the UK has some of the cheapest road fuel prices in Europe. In the 10 years between 2003 and 2012 pump prices increased from 76p per litre (pl) to 136p pl for petrol, and from 78p pl to 142p pl for diesel, caused largely by an increase of nearly 24p pl in tax and duty and 33p pl in the cost of crude oil.OFT Chief acknowledges deep mistrust surrounding pump pricesClive Maxwell, OFT Chief Executive, said: "We recognise that there has been widespread mistrust in how this market is operating. However, our analysis suggests that competition is working well, and rises in pump prices over the past decade or so have largely been down to increases in tax and the cost of crude oil."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. There may be some issues at a local level. Where we receive evidence of potential anti-competitive behaviour we will consider taking action. For example, we have recently opened an investigation into the supply of road fuel in the Western Isles of Scotland." Competition between the 'Big Four' and other competitorsThe group noted that a key feature of the road fuels sector over the past decade has been the growing influence of the big four supermarkets.Tesco, Sainsbury, Morrison and Asda collectively increased their share of road fuel sold in the UK from 29% in 2004 to 39% in 2012. The organisation said: "The supermarkets' high throughput per forecourt and greater buying power has allowed them to sell fuel more cheaply than other competitors. In August 2012, for example, the average price of petrol at supermarkets was 2.0p pl cheaper than the average at oil company owned sites and 4.3p pl cheaper than the average charged by independent dealers."The OFT also acknowledged that many independent dealers have found it difficult to compete in this sector, with a significant number exiting the market, with the over number of UK forecourts down from 10,867 in 2004 to 8,677 in 2012. However, it noted that where forecourts closed between November 2011 and August 2012 retail competition still appears to be strong.Higher costs at service stations give cause for concernThere was a significant difference in the cost of fuel at motorway stations, the OFT found, and said that while the increase in prices may be explained to some extent by the higher costs associated with running motorway forecourts, it is concerned that drivers are not able to view prices until they have pulled into the service station. As a result, it has now asked the Department for Transport to consider introducing new road signs that would display service station petrol and diesel prices for motorway drivers.
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Aker BP Q1 beats forecast as costs fall, Tyrving to start sooner

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Aker BP Q1 beats forecast on record output, lower cost

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BP's gas and renewables boss steps down, as CEO shrinks leadership

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18 Apr 2024 14:12

UK shareholder meetings calendar - next 7 days

Friday 19 April 
Murray International Trust PLCAGM
Quantum Exponential Group PLCGM re delisting or potential investment in company
Monday 22 April 
Renalytix PLCGM
Travis Perkins PLCAGM
Tuesday 23 April 
AIQ LtdAGM
NatWest Group PLCAGM
Taylor Wimpey PLCAGM
Wednesday 24 April 
abrdn PLCAGM
abrdn Equity Income Trust PLCAGM
AssetCo PLCAGM
Breedon Group PLCAGM
British American Tobacco PLCAGM
Bunzl PLCAGM
Coro Energy PLCAGM
Croda International PLCAGM
Entain PLCAGM
Greencoat UK Wind PLCAGM
Primary Health Properties PLCAGM
Serco Group PLCAGM
Synectics PLCAGM
Thursday 25 April 
AFC Energy PLCAGM
Admiral Group PLCAGM
Beazley PLCAGM
BP PLCAGM
CLS Holdings PLCAGM
CRH PLCAGM
Dalata Hotel Group PLCAGM
Develop North PLCAGM
Drax Group PLCAGM
Everest Global PLCAGM
Greencoat Renewables PLCAGM
Hammerson PLCAGM
Helios Towers PLCAGM
Hikma Pharmaceuticals PLCAGM
International Biotechnology Trust PLCAGM
London Stock Exchange Group PLCAGM
Manx Financial Group PLCAGM
Mattioli Woods PLCGM re Pollen Street Capital Ltd takeover
Persimmon PLCAGM
Premier Miton Global Renewables Trust PLCAGM
Relx PLCAGM
Schroders PLCAGM
Smithson Investment Trust PLCAGM
Tissue Regenix Group PLCAGM
Weir Group PLCAGM
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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LONDON MARKET MIDDAY: FTSE 100 up despite hawkish Fed rates outlook

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18 Apr 2024 09:04

IN BRIEF: BP trims executive team in operational restructuring

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BP cuts size of executive team, shakes up structure

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Shell urges investors to reject shareholder group's climate demands

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Sustainable Finance Newsletter - Republican AGs look to limit climate groups

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Shell urges investors to reject shareholder group's climate demands

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Carbon Done Right advances Sierra Leone rewilding project

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LONDON MARKET CLOSE: Investors show nerves after Iran launches drones

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London close: Stocks slip on renewed geopolitical tensions

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