The findings are the result of an urgent market investigation commissioned by Kwasi Kwarteng, the company secretary, after: concern that a fuel tax cut announced in March was not communicated “in a visible or meaningful way”†
The cost of refueling the average family car recently rose above £100 for the first time, despite the 5p fuel tax cut.
The competition watchdog defended gas station retailers and said they had largely passed on the tax cut.
But the CMA was concerned that: rural drivers pay more than those in urban areas† It now plans to conduct a more in-depth assessment of the market, from refining to gas stations. It will look at the differences in forecourt price between urban and rural areas and refining margins.
Sarah Cardell, general counsel to the CMA, added: “While there is no escaping global pressures that are driving fuel prices up, the widening gap between the oil price and the wholesale price of petrol and diesel is a cause for concern.
“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.”
Mr. Kwarteng said he was pleased with the CMA’s decision to launch a full investigation. “The cost of road fuel remains a significant part of household and business expenses,” he said. “With this in mind, it’s essential that competition works to keep prices low.”