RMI calls for UK fuel industry probe

The Retail Motor Industry Federation (RMI) has called for an immediate investigation into the UK fuels market, saying that “business and consumers deserve the truth about the costs and pricing of such a vital commodity”.

In a letter to Chancellor George Osborne, chairman of the RMI's Petrol division, Brian Madderson, explains that he has sent a formal submission to the Office of Fair Trading (OFT) alleging unfair pricing and competition practices within the road fuel industry, to the detriment of consumers, businesses and independent fuel retailers.

“This will be the most important study of the troubled UK fuels market for more than a decade. Rising pump prices show no sign of abating. Now more than ever it is crucial that the OFT obtain real transparency into the structure of wholesale costs and retail competition,” says Madderson.

He adds that in 1990, there were more than 20,000 forecourts; today there are 8,500, leaving massive “fuel deserts”, especially in rural areas, with motorists forced to drive miles and prices hiked up as a result.

With the average price of diesel now reaching a record high, rising by 10ppl in 12 months to 143.05ppl, RMI Petrol is also urging the Chancellor to scrap a planned duty hike on 1 August, as well as implement a duty reduction.

RMI warns that a “perfect storm” of global factors, including rising crude oil prices, closing refineries and supply pressure could well push prices even higher by Easter.

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