Road Fuel Prices

Baroness Kramer Excerpts

Tuesday 4th July 2023 Lords Chamber

[Baroness Blake of Leeds (Lab)]

My Lords, cost of living pressures are affecting people right across Britain. In that context, we welcome the Government commissioning the Competition and Markets Authority to investigate soaring fuel prices last July. The CMA has finally recommended measures to improve fuel price transparency and stop inflated fuel prices being passed on to hard-hit consumers. The fuel finder open data scheme is welcome, but given that retailers have been inflating the prices, how do the Government expect the CMA’s voluntary scheme to work? When will the Government end the painful wait for consumers and bring forward the legislation that is needed to enforce it?

[Baroness Kramer (LD)]

My Lords, the Government have stood for this gouging behaviour by the supermarkets over the past year. In rural areas such as Somerton and Frome, and Mid Bedfordshire, people find themselves facing the highest prices and the least competition, and will benefit the least from the comparison scheme. I have two questions for the Minister. Is it fair that supermarket bosses will get bonuses based on gouged profits, and will the Minister review the rural fuel duty relief scheme, which gives a 5p-per-litre reduction, to see whether it can be extended to rural areas not presently covered?

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, let me thank both noble Baronesses for their support for the report and the Government’s action. First, in response to the noble Baroness, Lady Blake, putting the open data scheme and monitoring function on a statutory footing will require parliamentary time, but the Government will work as quickly as possible to do so. I note that she welcomed the fact that in the meantime we have asked the CMA to create an interim voluntary scheme encouraging fuel retailers to share accurate, up-to-date prices. Of course, we expect all fuel retailers to co-operate with the CMA by providing that information fully and promptly. We will legislate as soon as parliamentary time allows, but we need the primary legislation to be passed by both Houses first. We will consult on the secondary legislation in advance of primary legislation being approved in the digital services Bill. The noble Baroness will know that taxation and fuel duty are matters for the Treasury and the Chancellor, and I would not want to predict what he might do on that.

--- Later in debate ---

[Lord Callanan (Con)]

I understand the point that the noble Lord makes, but I think that he is being a little unfair. The CMA is a regulator, of course; this particular regulator very much had the interests of the consumer at its heart when it produced this report, which has widespread support and backing from all parts of the House. The Government will act on its recommendations, so that is a case of a regulator acting in consumers’ interests. The CMA is designed to produce competition, which is the best thing that can operate for the consumer.

The other example mentioned by the noble Lord is slightly off topic, but much more attractive interest rates are offered by a number of smaller financial institutions. It really is a question of the consumer shopping around, but plenty of information and online resources are available for someone to find the best return on their money. No doubt the noble Lord has lots that he wants to invest; if he looks at the various websites, he will be able to invest it well. Obviously, he is a well-known Scottish Member so is bound to have plenty of funds to invest.

[Baroness Kramer (LD)]

My Lords, picking up the point made by the noble Lord, Lord Vaux, about motorway services, a number of continental countries have signs along the motorway telling drivers what the price of petrol will be at the first, second, third and fourth service stations along their route. That provides a competitive element and is supposed to have been very successful in managing prices. Are the UK Government looking at such a scheme?

[Lord Callanan (Con)]

The noble Baroness makes a good suggestion. I am not aware of that being contemplated or what powers we would need to implement it, but I will certainly ask officials to have a look at it.