The Business Secretary Kwasi Kwarteng has ordered the Competition and Markets Authority (CMA) to hold an “urgent” investigation amid concerns some petrol stations are pocketing the fuel duty cut worth millions.
Kwarteng wrote to the CMA saying that motorists are “rightly frustrated” that the Chancellor’s 5p per litre reduction has not prevented fuel prices from getting out of control.
A UK forecourt believed to be the most expensive in the UK is charging an eye watering £10.85 a gallon for petrol
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Kwarteng said, “Drivers should be getting a fair deal for fuel across the UK.
“The British people are rightly frustrated that the £5bn package does not always appear to have been passed through to forecourt prices.
“I am writing to you to ask that the CMA conduct an urgent review of the fuel market … to explore whether the retail fuel market has adversely affected consumer interests.”
The CMA previously made Asda and Morrisons sell off a number of forecourts during private equity acquisitions, but last week Asda hicked their prices to “nearly 5p a litre in a single day.”
Jack Cousens, the AA’s head of roads policy, welcomed move and he called for “more urgent action” from the government.
Cousens argued, “To relieve pressure at the pumps we need an immediate 10p cut to fuel duty.
“Longer term, the CMA should consider extending the pump price transparency available in Northern Ireland to the rest of the UK.
“The Consumer Council’s fuel price checker stimulates competition and has led to drivers there enjoying the lowest fuel prices in the UK.”
A filling station in South Kensington is charging an eye watering £2.389 for a litre of petrol which is £10.85 a gallon.
The Gulf garage in Sloane Avenue, South Kensington is charging 57p which is well above the average price of petrol of £1.82 per litre which was uncovered by the online paper London World.
London World journalist, Claudia Marquis undertook an investigation and reported, “I’m standing at the petrol station off Battersea Park Road, where only moments ago the price per litre was £1.82.
“However, in the last three minutes the price has gone up by 3p – it’s now £1.85 for petrol.”