In just 14 days after the CMA issued its report on November 8, fuel prices reduced by 3.75p (Peter Byrne/PA) (PA Archive)
Fuel retailers receiving “a good prod” from the competition regulator has sparked a sharp cut in pump prices, according to new analysis.
Average petrol prices dropped twice as fast following a Competition and Markets Authority (CMA) report accusing retailers of not reflecting a decline in wholesale costs, the AA said.
It took 31 days for prices to decrease by 3.5p per litre from October 8.
It’s amazing what happens when the competition watchdog gives the fuel trade a good prod
Luke Bosdet, AA
In just 14 days after the CMA issued its report on November 8, prices reduced by 3.75p.
The regulator warned that in September and October, the differences between pump prices and wholesale costs of fuel were “significantly above the long-term average”, and a continuation of that trend would “cause concern” about a lack of competition.
AA pump price spokesman Luke Bosdet said: “It’s amazing what happens when the competition watchdog gives the fuel trade a good prod – pump prices fall at twice the speed and £2 comes off the cost of a tank of petrol within a fortnight.”
Legislation to give the CMA new powers – expected to come into force next year – to act as the UK’s fuel price watchdog is going through Parliament.
The regulator will have more ability to gather information to provide regular public updates on the state of competition in the UK fuel market, and will report evidence of unjustified price increases.
Many fuel retailers – including all four fuel-selling supermarkets – have signed up to a CMA scheme to share daily price data.
The Government intends to make this a mandatory programme.
Mr Bosdet said: “We will have to see how MPs giving the CMA a stronger role in scrutinising the fuel trade turns out in practice.
“However, evidence this month is extremely positive.
“Drivers just need the voluntary fuel price reporting scheme to become a statutory one, particularly along motorways and major routes.”
RAC fuel spokesman Simon Williams said: “The recent fall in fuel prices is definitely no cause for celebration as drivers are still losing out massively at the pumps because retailers refuse to cut their prices to reflect far lower wholesale costs.
“Average retailer margin on petrol is currently around 17p a litre – 10p more than the long-term margin.”
News Related-
Russian forces encircle Ukraine’s Avdiivka and ‘ready to storm city’ after months-long offensive
-
Emery could land Bailey upgrade in Aston Villa move for "unique" 6 ft 2 maestro
-
Keir Starmer is keen to tell you that there are no easy answers on immigration. Well, here’s one
-
Newcastle United in transfer talks with the new Robert Lewandowski: report
-
Football rumours: Juventus eyeing swoop for Thomas Partey
-
On this day in 2015: Jamie Vardy scores in 11th game in a row
-
At least 20,000 lives a year could be saved by 2040 if UK adopts ‘bold new cancer plan’
-
UK scientists studying ‘teaspoon-sized’ sample from asteroid Bennu to understand origin of life
-
This Christmas, please spare us the mix of irony and knitwear
-
Napoleon’s dialogue isn’t ‘laughably bad’ – it’s supposed to be that way
-
Sisters transform loss-making business into near £100m giant
-
Israel-Hamas war live: 33 Palestinians freed after 11 Israeli hostages released; Gaza truce extended by two days
-
Rangers boss Philippe Clement targets two new signings in January transfer window
-
20mph default speed limit 'putting tourists off visiting Wales'