ACS (the Association of Convenience Stores) has welcomed the recommendations of the Competition and Markets Authority (CMA) on increasing levels of transparency for consumers in the UK fuel market.
The recommendations, published today (3rd July), follow a year-long investigation into the fuel market by the CMA after concerns were raised about the volatility of fuel prices and differential pricing based on area and type of business.
In their report, the CMA has recommended the introduction of a new ‘fuel monitor’ oversight body, backed by legislation and fed by open data provided by all fuel retailers that would provide daily updates on fuel pricing at petrol forecourts. The intention of the new fuel monitor would be to provide customers access to fuel prices in their local area, either through sat nav systems or a dedicated app. This differs from existing fuel price comparison apps on the market which use data provided by users rather than retailers.
ACS chief executive James Lowman said: “We welcome the CMA’s recommendations on transparent pricing for consumers, but this must be achieved without placing unnecessary and disproportionate burdens on fuel retailers, especially independents operating the smallest businesses.”
Sarah Cardell, chief executive of the CMA said: “We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices so retailers have to compete harder for their business. This is why we are recommending the UK government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time. This would end the need to drive round and look at the prices displayed on the forecourt and would ideally enable live price data on satnavs and map apps.”
While the CMA state that greater transparency is needed in the market, they have announced that they have no intention of opening an enforcement case against any part of the fuel sector as there is ‘no evidence to suggest that there has been cartel behaviour taking place’.
ACS has published a brief explainer document on the elements that make up the price of fuel and market trends, which is available here.
The full CMA announcement is available here: https://www.gov.uk/government/news/cma-sets-out-plan-to-help-drivers-get-more-competitive-fuel-prices
