2023-07-03 18:42:38
London accuses fuel distributors of having taken the British for “cash cows” by inflating their margins despite the economic crisis, and will force companies in the sector to publish their prices in real time to promote competition.
The British competition watchdog, the CMA, published a report on this sector on Monday which shows that fuel distributors have inflated their margins between 2019 and 2022, which cost 900 million pounds (more than a billion and a half Canadian dollars) in 2022 alone to British motorists.
The government, in a separate statement, adds that it will therefore “amend the law to force retailers to provide up-to-date information on their prices, for greater transparency and more competition”, while fuels have been one of the drivers of very high inflation in the UK.
Many Britons are being hit by a severe life crisis, with inflation persisting in May at 8.7% (y-o-y), after hovering above 10% for months, driven in particular by energy prices in the wake of the war in Ukraine.
The CMA “has seen a worrying weakening of competition in the fuel market and an overall increase in retailer margins, in particular for diesel”, according to the government statement, which says it is inspired by transparency measures. on prices in Germany and Australia.
“Some fuel retailers have taken motorists for cash cows” by raising their prices when fuel costs soared, without passing on the declines when energy prices fell, denounced the British minister for the environment. ‘Energy, Grant Shapps, quoted in government statement.
Pump prices flew from record to record in the UK last summer, approaching 2 pounds (3.4 dollars) per liter for diesel a year ago, before falling again. Prices are currently hovering around 1.45 pounds ($2.4) per liter for both diesel and unleaded, according to official figures.
Under pressure to lower prices, the main British supermarket chains, several of which are also fuel retailers, assured a parliamentary committee last week that they were doing all they could to help consumers.
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