PRA RAISES CONCERNS FOLLOWING COMMENTS FROM DANNY ALEXANDER

Published 06/11/2014 00:00:00 in Press Releases

The Petrol Retailers Association (PRA) has raised their concerns following comments that the industry will be warned for the first time by the Treasury to pass on price cuts to motorists.

Chief Secretary to the Treasury Danny Alexander has vowed to write to all main fuel suppliers and distributors for “assurance” that they will pass on the benefits of falling crude oil prices to consumers “as quickly as possible”.

Brian Madderson, Chairman of the PRA comments, “The PRA has been trying for weeks to get a meeting with a Treasury Minister to discuss the whole issue and they have failed to agree to a meeting so therefore to criticise the industry without speaking to us is grossly unfair.

“The Competition and Markets Authority (CMA) recently looked at the industry and made no comments on prices, and an investigation from the Office of Fair Trading found that there was very little evidence to suggest that petrol and diesel prices rise quickly when oil prices go up, but are slow to fall when prices drop.

“The Government should be pressing the EU Competition Commission to complete their investigation of possible oil price fixing, which they commenced in August 2013.

“In the past five years, 900* independent petrol retailers across the UK have closed due to economic reasons, and we are deeply concerned that over 80 pence of every litre purchased goes to Government fuel tax and VAT.  Fuel duty in the UK is already amongst the highest in Europe and the Treasury should be looking at ways of further reducing this tax burden on motorists and businesses.”

 

ENDS

NOTES TO EDITORS: *Survey conducted by Experian Catalist for the PRA conducted in the second quarter of 2014.

Rupal Rawal, Communications Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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