30/01/13

Kent small business leaders' disappointment over Office of Fair Trading fuel probe

The Office of Fair Trading investigated petrol prices

by business editor Trevor Sturgess

Competition watchdogs have fuelled disappointment among Kent business leaders today at their decision not to launch a full probe into fuel pricing.

An investigation into the soaring cost of petrol and diesel has concluded retailers are not ripping off drivers.

The Office of Fair Trading looked into the UK fuel market after allegations prices went up quickly when oil prices increased, but were slow to follow them down.

The Federation of Small Businesses said it was deeply disappointed. Roger House, Kent and Medway chairman (pictured right), said the OFT report was bad news for small firms dependent on their vehicles for everyday business activities.

"In recent years, we have seen a remorseless increase in the price of fuel that is paid at the pumps," he said. "This is set to rise with wholesale costs having risen by 5p since Christmas.

"We believe there is a clear disconnect between wholesale fuel prices and the price hard-pressed motorists are forced to pay at the pump. When the price of oil increases fuel price rises follow soon afterwards, but reductions in the wholesale price are not being passed on when it falls."

Mr House added too many of the county's small firms were having to pass on rising costs to customers. Research showed three-quarters of members believed their business was being "negatively impacted by the high cost of fuel".

Mr House urged "tough action against those who are profiting at the expense of road dependent small businesses".

However, he welcomed the OFT's highlighting of the high price of fuel at motorway service stations.

Folkestone-based Peter Carroll, who set up Fair Fuel UK two years ago to campaign for cheaper prices at the pump, said he was "stunned".
Mr Carroll said: "I am actually just quite shocked and stunned at the moment.
"I'm wondering what the word fair means in the Office of Fair Trading. They've let the country down."

Angus Elphinstone, founder of delivery auction website Anyvan.com, accused the OFT of reaching a depressingly predictable conclusion - motorway service stations are too expensive.

He said: "They could have saved themselves a lot of time by asking any of the millions of motorists who sigh when the fuel light comes on when they're on a motorway.

"Most of us buy fuel from a motorway garage in much the same way as we settle into the dentist's chair. Unwillingly and with gritted teeth.

"This investigation has achieved very little, other than to leave UK motorists and businesses with the feeling that they’ve been shortchanged yet again."