Inquiry at last into pump prices on Scottish islands

THE Office of Fair Trading is to carry out an investigation into petrol prices and the supply of fuel to the Outer Hebrides.

High pump prices in the islands have been a controversial issue for many years with drivers paying much more at the forecourt than motorists on the mainland.

Yesterday the price per litre for unleaded petrol in Stornoway was 11p more expensive than in Inverness and 12p dearer than in Glasgow.

Angus MacNeil, the Western Isles MP, said he has been told by Scottish Secretary Michael Moore that steps will be taken to review the wholesale and retail fuel supply arrangements to the Western Isles in comparison with other areas of Scotland, and to explain why there is such a big difference in pump prices.

Mr MacNeil said: “Since I was elected as an MP in 2005, the single biggest issue of concern among my constituents has been the high price of fuel and especially the difference in price between areas of my constituency and mainland Scotland.

“At my request, the Secretary of State for Scotland, Michael Moore, instigated that the OFT look at fuel prices in the islands. Mr Moore has now informed me that the OFT will look at the wholesale and retail fuel supply to the Islands.

“I welcome this and I hope that they will look closely at the Western Isles’ situation in comparison to other areas of Scotland, and see what kind of price difference there is when there is more than one fuel supplier in an area.”

He said many people had “huge concerns” about the high cost of fuel and the issue needed to be properly investigated.

He added: “Fuel is an issue that affects each and every one of us whether we have a vehicle or not. When the price of fuel is extremely high, as it has been for the past four years, it has a huge knock-on effect on businesses, especially those in the haulage industry, families and communities.

“I hope now that the OFT gets to the bottom of the matter and finds out why we in the Hebrides pay much more for fuel at the forecourt in comparison to the mainland.”

The investigation was also welcomed by Comhairle nan Eilean Siar (Western Isles Council). John Mackay, chairman of the council’s fuel working group, said: “It is high time that the concerns of islanders on this issue were addressed.

“Anything which can lead to an explanation of why prices in the islands are excessively high is a positive development and this will hopefully help lead to a reduction in prices which are currently a burden on consumers and business in the islands.”

A spokesman for the OFT said: “We are currently undertaking some desk-based research on pump prices on the Scottish islands.

“An objective is to determine how fuel price differentials have moved since the last detailed reviews in 2000-1. This will help inform what further action, if any, in this area may be appropriate.”

The announcement came after the UK government received final EU clearance to operate its rural fuel rebate pilot scheme in the Inner and Outer Hebrides, Northern Isles, islands in the Clyde and the Isles of Scilly.