CMA opens market study into road fuel sector

 

CMA opens market study into road fuel sector

The Competition and Markets Authority (CMA) has launched a market study into the supply of road fuel in the UK.

The Secretary of State instructed the CMA to undertake an urgent review of the fuel market on 11 June amid concerns about potentially unfair pricing of fuel across the country.  The CMA reports rising pump prices over the last 12 months, particularly in 2022.  However the 5p per litre cut in fuel duty announced in the Spring Statement appears to have been passed on.

The market study will examine why refining spreads are so high, how long they are likely to continue and whether there are measures the UK could or should take to address them.

The CMA invites evidence and views on the issues that it intends to examine during the market study by 1 August 2022.

The CMA must announce within six months whether or not it is intending to make a market investigation reference following its market study.

The CMA must publish its final report on the market study within 12 months.  It intends to publish an update on its initial findings in the autumn of 2022.

The CMA is not the only national competition authority to probe the fuel sector.  The launch of the study coincides with the 7 July publication by the Austrian Federal Competition Authority on its fuel market inquiry report. The authority found increases in refining margins but not that these were due to a lack of competition.  It will take account of feedback on its report when it makes recommendations to the government when the consultation on the report concludes on 27 July.

UK:

https://www.gov.uk/government/news/review-finds-cause-for-concern-in-some-parts-of-road-fuel-market

Austria

https://www.bwb.gv.at/fileadmin/user_upload/Bericht_BU_Kraftstoffe_2022_final.pdf