The government has asked Britain’s competition watchdog to examine the retail fuel market in order to determine if a reduction in duty has been passed on to consumers after prices hit new highs.
Kwasi Kwarteng, Business Secretary, stated that Sunday’s investigation would determine why fuel prices are always so fast to rise and slow to fall.
Oil prices have risen worldwide due to Russia’s invasion of Ukraine and the reopening of economies following the pandemic.
Britain cut fuel duty by 5pence per litre over a one-year period in March. This was in response to a worsening cost of living and a package worth 5 billion pounds ($6.2 billion).
However, prices have continued to rise and the average cost to fill a family vehicle with gas rose to over 100 pounds last week, according to Experian Catalist.
Kwarteng wrote to the Competition and Markets Authority, (CMA) that “the British people are rightly disappointed that the 5 billion pound package doesn’t always appear to be passed through to forecourt pricing and that in some places, prices remain higher than those in nearby towns.”
He stated that the market’s health, regional factors and local competition should all be considered in any review.
He asked for a report at the beginning of July 7.
