Volatility of wholesale prices highlights OFT’s refusal to investigate the UK fuels market

Published 09/05/2013 00:00:00 in Press Releases

The Petrol Retailers’ Association (PRA) has again voiced its concerns about the unpredictability of the wholesale petrol market.

In the last seven days there has been a drop by over 2.6pence per litre (ppl), which encouraged supermarkets to rush price reductions onto their forecourts. However by the start of this week, wholesale costs recovered all that reduction, resulting in a swing of more than 5.2ppl over a few days of trading.  

Brian Madderson, Chairman of the PRA, commented “With the PLATTS led market showing such volatility our independent retailers are finding it difficult to keep track of cost changes and plan their businesses.

“The PRA, backed by MP Robert Halfon and his cross-party group at Westminster as well as all major motoring organisations, initiated a complaint on road fuel pricing to the Office of Fair Trading last year.

“The Office of Fair Trading has stated that more evidence is needed in order for them to investigate further yet they could start by monitoring the workings of the wholesale market affecting UK pump prices”.

The PRA further commented that it is impossible to justify a rise or fall in pump prices to consumers as the market is just not sufficiently transparent.

Madderson continued “We will be raising our concerns with the Government so that they can take necessary action to address this wholesale cost volatility issue further”

ENDS

NOTES TO EDITORS:

Keely Scanlan, Press Officer
Tel: 020 7307 3410
Mob: 07825097697
Press Office direct line: 020 7307 3422   
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk       Email: keely.scanlan@rmif.co.uk

The Petrol Retailers’ Association is an association within the Retail Motor Industry Federation (RMI) which represents the interests of operators in England, Scotland, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. 

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