West Dorset MP welcomes study on cost of supermarket fuel
Chris Loder's been raising concerns about 'unfair pricing' for months
West Dorset's MP says a study into the cost of fuel at the pumps 'confirms his suspicions' that supermarkets in particular are overcharging.
Chris Loder's been lobbying for an investigation into disparities in fuel pricing for months.
He's welcoming an announcement by the Competition and Markets Authority (CMA) that they're continuing to look into the issue.
In their update, the CMA said they'd found evidence that while the majority of fuel price increases are determined by global factors, the higher prices that drivers are facing reflects a weakening of competition.
They've also said profit margins for fuel have increased across the market, especially in supermarkets.
Sarah Cardell, Chief Executive of the CMA, said:
"The rising cost of living is putting people and businesses under sustained financial pressure. The CMA is determined to do what it can to ensure competition helps contain these pressures as much as possible.
"Our Road Fuel market study is nearly complete. Although much of the pressure on pump prices is down to global factors including Russia’s invasion of Ukraine, we have found evidence that suggests weakening retail competition is contributing to higher prices for drivers at the pumps. We are also concerned about the sustained higher margins on diesel compared to petrol we have seen this year.
"We are not satisfied that all the supermarkets have been sufficiently forthcoming with the evidence they have provided in our Road Fuel market study, so we will be calling them in for formal interviews to get to the bottom of what is going on. It is a priority for the CMA to publish a full and final report, including recommendations for action, by the beginning of July."
Chris Loder said:
“This update from the CMA confirms my suspicions about the unfair fuel pricing of the supermarkets. We have been on the receiving end of this immoral practice here in West Dorset, where there has been a disparity of up to 20 pence per litre.
"The update also highlights how obstructive the supermarkets have been, as many have not been forthcoming with their evidence. I look forward to reading the final report, which will be issued no later than the 7th July 2023."