Petrol and Diesel Debate

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Department: HM Treasury
Wednesday 23rd May 2012

(12 years, 6 months ago)

Westminster Hall
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Robert Halfon Portrait Robert Halfon
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My hon. Friend is exactly right, which is why I am arguing that the Government should force the Office of Fair Trading to launch an investigation into the uncompetitive nature of oil companies.

The third issue is the problem of local variation in petrol prices, especially in rural areas and towns such as mine. In Harlow, fuel is always 4p to 5p more expensive than it is a couple of miles down the road. I have complained to the OFT. Its letter was a classic Sir Humphrey reply, giving a lot of sympathy and a whole load of reasons why nothing could be done.

Marcus Jones Portrait Mr Marcus Jones (Nuneaton) (Con)
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I thank my hon. Friend for giving way, and I pay tribute to his work on this campaign. On local areas and price differences, does he not agree that any OFT investigation should consider the lack of filling stations? Owing to the huge reduction in their numbers over the past 15 or 20 years, there is a distinct lack of price competition in local areas.

Robert Halfon Portrait Robert Halfon
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My hon. Friend has read my mind; I was about to come to fuel deserts. Britain has gone from 20,000 forecourts in 1990 to 8,500 today, a drop of nearly 60%, turning huge areas of the UK into fuel deserts where motorists must drive to fill up. There are examples in Cornwall, where a hypermarket sold fuel at below cost price until all the other petrol stations went bust, after which its prices rose considerably.