Transport: Fuel Prices

Lord Steel of Aikwood Excerpts

Thursday 24th November 2011 Lords Chamber

Asked By

[Lord Steel of Aikwood]

To ask Her Majesty’s Government whether they plan to take action regarding the retail price of fuel at motorway service stations.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, the Government believe that the prices that an enterprise charges for its products and services is primarily a commercial matter for the enterprise concerned. Any competition concerns relating to the pricing of goods, including the retailing of petrol at motorway service stations, would fall to the Office of Fair Trading to investigate as the responsible competition authority.

[Lord Steel of Aikwood]

My Lords, I am grateful for that Answer, but is the Minister aware that prices at motorway stations are currently at about 10p a litre above those available elsewhere? This surely cannot be right. Will the Government consider referring the matter to the Office of Fair Trading or, on the other hand, copying what is done in France, where on the approach to a service station there is a notice board indicating the supplier and the price not only at that station but at the following two, and in that way promote competition?

[Baroness Wilcox]

I am very interested in the second part of that question. That sounds a very good idea, and I shall take it away if I may. My answer to the first part, of course, has to be that the Government believe that the best guarantee of a good deal for consumers is an open and competitive market—so what he suggested at the end of the question would be very helpful. However, if there is a concern that petrol prices at motorway service stations are affected by anti-competitive practices, the responsibility falls back to the Office of Fair Trading, and the Government really cannot interfere with that.