Five Questions About: Petrol prices

 

Simon Read
Friday 07 September 2012 19:41 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Are they going up again?

They already have. In fact pump prices have climbed so high this month that the Office of Fair Trading has launched an investigation to find out if prices are being manipulated.

Petrol rises when crude oil climbs, but never when it falls, does it?

That's what critics say. Analysis by the AA says there may be something to this but there are also criticisms of supermarkets which sometimes price petrol differently in different towns. The practice has led to a postcode lottery where motorists living in so-called "price jam" towns are forced to pay up to 5p more a litre for their petrol than near neighbours a few miles away.

So supermarkets are to blame?

Not necessarily. The OFT will look into the whole industry, from oil producers, to the wholesale suppliers and gas stations to see if there is unfair price practice anywhere along the line.

What will the OFT do?

They've asked for evidence and will report back in January. They could refer the industry to the Competition Commission.

So we won't have cheaper petrol?

There is growing pressure for fairness on prices so the OFT must be seen to be doing something. We'll wait to see what that is.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in