OFT fuel report labelled “side show” by FTA
The organisation submitted information on the UK petrol and diesel fuels sector to the OFT inquiry, which was launched to identify whether or not there were competition problems that could be tackled in the sector. Within its evidence, FTA raised its concerns about price co-ordination in oil price reporting, and the significant issue of attenuating effect of fuel duty and tax on bulk diesel contract prices, but believes the report will not solve its continued concerns over the subject of fuel duty.
Yesterday’s OFT report has included points made within the FTA evidence, stating that the rises in pump prices for petrol and diesel over the past 10 years have been caused largely by higher crude oil prices in tax and duty and not a lack of competition, adding that the ‘national level of competition is working well in the UK road fuel sector’.
The FTA said that it believes that fuel duty still remains at the heart of the pump price problem, and through its work with FairFuelUK, it continues to campaign on behalf of its members, calling on government to recognise in its forthcoming Budget the positive economic benefits that a cut in fuel duty could have.
James Hookham, FTA managing director policy & communications, said: ‘This report from the OFT won’t change anything, and FTA believes it is only a distraction from the real issue of fuel duty and the Chancellor still has to do something.’