The RAC has voiced reservations regarding Energy Secretary Grant Shapps‘ efforts to secure voluntary real time pump price disclosures from supermarkets.
Shapps is meeting today with major UK supermarkets, fuel retailers and oil companies to discuss the escalating issue of fuel price hikes.
During the meeting, Shapps will urge the retailers, including Asda, Tesco, Morrison’s, Sainsbury’s, bp, Shell and Esso, to adopt the CMA’s voluntary scheme.
While the RAC acknowledges the intention behind this move, it believes that such measures are unlikely to result in reduced fuel prices.
RAC fuel spokesperson Simon Williams said: “We fear the Energy Secretary’s efforts may be in vain, particularly as apps like myRAC already allow all drivers to compare prices free of charge. What’s badly needed is an official wholesale fuel price monitoring function which has the power to fine or take action against major retailers who don’t lower their forecourt prices when wholesale costs drop significantly.
“While the Competition and Markets Authority recommended an element of monitoring wholesale prices in its report in UK fuel retailing, the RAC fears without the threat of consequence in the form of fines, the biggest retailers are unlikely to lower their pump prices quickly enough when the wholesale market trends down.
“This aspect of the CMA’s report needs to be properly addressed when legislation is put before Parliament.
“Competition only works where one or more retailers focus consistently on cutting prices to get more people to use their forecourts. Sadly, this is something that is currently missing everywhere but in Northern Ireland where fuel retailing is fairer on drivers.”
