Fuel prices have fallen sharply after intervention from the competitions watchdog – slashing £2 off the cost of a tank of petrol, analysis suggests.
A Competition and Markets Authority report published on November 8 accused retailers of not reflecting a decline in wholesale costs.
The regulator warned that in September and October, the gap between pump prices and wholesale costs was ‘significantly above the long-term average’.
A Competition and Markets Authority warned that in September and October, the gap between pump prices and wholesale costs was ‘significantly above the long-term average’ (Stock Image)
In the 14 days since the report, prices fell by 3.75p per litre – more than the 3.5p decrease seen in the 31 days from October 8, the AA said.
‘It’s amazing what happens when the watchdog gives the fuel trade a good prod,’ said Luke Bosdet at the AA. ‘Pump prices fall at twice the speed and £2 comes off the cost of a tank of petrol in a fortnight.’
Legislation due to come into force next year will give the CMA more power to gather data for updates on the state of competition in the market and to report unjustified price rises.
But RAC fuel spokesman Simon Williams said the drop in prices was ‘no cause for celebration’ as drivers were still ‘losing out massively because retailers refuse to cut their prices’.
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