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Retail fuel market faces probe by UK competition watchdog as prices soar

The watchdog of competition in the UK will open an investigation into competition in the retail fuel market amid rising fuel prices.

The Competition and Market Authority’s move comes after Business Secretary Kwasi Quarteng called on the regulator to conduct an urgent investigation into whether fuel tariff cuts are being passed on to drivers and to examine changes in fuel costs across the country.

Commitment on Monday by CMA Conducting a “brief and focused review” of the market comes as consumers face rising fuel prices. Last week the average cost of refilling a 55-liter family car in a petrol or diesel tank first reached £ 100, compared to £ 71 a year ago, according to the RAC spoilage assistance group.

Economic distress for drivers in a deep yard a The cost of living crisis This has already left consumers facing higher energy bills and slowing down the economy. Inflation reached a 40-year high of 9% in April.

In a letter to the CMA, Quartang said there was “widespread concern about the rate of price increase in the front yard”, urging the regulator to see if there are measures that would increase transparency for consumers as to why prices are rising.

Chancellor Rishi Sonak lowered the fuel tax by 5p per liter in March, but this move did not hurt slightly as oil prices continued to rise.

Forecourt operators set their own prices after purchasing gasoline or diesel supplies, with smaller rural areas usually charging higher prices. Supermarkets tend to be cheaper because they use fuel as a means of enticing consumers to enter their stores.

The sector is dominated by BP and Shell, as well as by large supermarkets like Tesco and Asda.

Motor campaign groups have long argued for greater transparency in the way pump prices are set. About 45% of the prices of fuel and diesel are a type of tax, whether fuel tax or VAT. Owners of fuel plots are not obligated to pass on to consumers cuts in fuel customs.

“We need more transparency in fuel prices, people do not understand what the price should be,” said Edmund King, AA president.

However, the Fuel Retailers Association said the yard owners were “unfairly discriminated against in the goat,” adding that they expected the CMA’s investigation to find that “competition between the front yards remained vigorous and that our members were operating at a razor-thin margin” and that fuel duty was cut. Moved on.

The toll that higher inflation has in the wider UK economy was highlighted on Monday when official data showed it Gross domestic product declined Between March and April.

King said Northern Ireland advertises local fuel prices, allowing consumers to shop and has cheaper fuel than the rest of the UK. The rise in prices over the past year means that the government now charges about 9p per liter of VAT more than a year ago, he added.

In a letter to Quarteng on Monday, CMA CEO Andrea Cosley said she would “provide advice to the government on steps that can be taken to improve outcomes for consumers across the UK”.

Government ministers have previously asked the watchdog to intervene in markets including PCR travel tests during the corona crisis.

Retail fuel market faces probe by UK competition watchdog as prices soar Source link Retail fuel market faces probe by UK competition watchdog as prices soar

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