Fuel costs fall sharply after intervention by markets watchdog
- CMA report accused retailers of not reflecting a decline in wholesale prices
Fuel costs have fallen sharply after intervention from the competitions watchdog – slashing £2 off the price of a tank of petrol, evaluation suggests.
A Competition and Markets Authority report revealed on November 8 accused retailers of not reflecting a decline in wholesale prices.
The regulator warned that in September and October, the hole between pump costs and wholesale prices was ‘considerably above the long-term common’. In the 14 days because the report, costs fell by 3.75p per litre – greater than the three.5p lower seen within the 31 days from October 8, the AA mentioned.
‘It’s superb what occurs when the watchdog provides the gas commerce a very good prod,’ mentioned Luke Bosdet on the AA. ‘Pump costs fall at twice the pace and £2 comes off the price of a tank of petrol in a fortnight.’
A Competition and Markets Authority warned that in September and October, the hole between pump costs and wholesale prices was ‘considerably above the long-term common’ (Stock Image)
‘It’s superb what occurs when the watchdog provides the gas commerce a very good prod,’ mentioned Luke Bosdet on the AA. ‘Pump costs fall at twice the pace and £2 comes off the price of a tank of petrol in a fortnight’ (File Photo)
Legislation on account of come into power subsequent 12 months will give the CMA extra energy to collect information for updates on the state of competitors out there and to report unjustified value rises.
But RAC gas spokesman Simon Williams mentioned the drop in costs was ‘no trigger for celebration’ as drivers had been nonetheless ‘dropping out massively as a result of retailers refuse to chop their costs’.
