PRA 'concerned' over fuel price unpredictability
The Petrol Retailers' Association (PRA) has again voiced its concerns about the unpredictability of the wholesale petrol market. In the last seven days there has been a drop by over 2.6 pence per litre (ppl), which encouraged supermarkets to rush price reductions onto their forecourts. However by the start of this week, wholesale costs recovered all that reduction, resulting in a swing of more than 5.2ppl over a few days of trading.
Brian Madderson, Chairman of the PRA, commented “With the PLATTS led market showing such volatility our independent retailers are finding it difficult to keep track of cost changes and plan their businesses. The PRA, backed by MP Robert Halfon and his cross-party group at Westminster as well as all major motoring organisations, initiated a complaint on road fuel pricing to the Office of Fair Trading last year.
“The Office of Fair Trading has stated that more evidence is needed in order for them to investigate further yet they could start by monitoring the workings of the wholesale market affecting UK pump prices”.
The PRA further commented that it is impossible to justify a rise or fall in pump prices to consumers as the market is just not sufficiently transparent.
Madderson continued “We will be raising our concerns with the Government so that they can take necessary action to address this wholesale cost volatility issue further”.