OFT probes excessively high petrol prices

Published on 08/10/2012 01:19

An INVESTIGATION into fuel prices will focus on allegations of profiteering and excessive pump prices in the Western Isles today.

The Office of Fair Trading (OFT) is taking evidence in Stornoway from campaigners, representatives from the island business sector, petrol retailers and suppliers to examine if fuel prices are high due to a lack of competition between fuel retailers in island and remote communities.

It coincides with local concern that competition is stifled by dominant supplier Scottish Fuels holding independent service stations to five-year contracts.

An OFT spokesman said, on a wider scale, it is looking for evidence of a “rocket and feather” effect where pump prices do not fall as fast as they rise when the price of crude oil changes.

The government watchdog is also keen to find out whether supermarkets’ and major oil companies’ practices are making it more difficult for independent retailers to compete with them.