Business Secretary orders competition watchdog to conduct urgent review of the fuel industry after the cost of filling up a car reached record highs
Kwasi Kwarteng has tasked the competition watchdog to carry out an ‘urgent’ review of the fuel industry after the cost of filling up a car reached record highs.
The Business Secretary has written to the Competition and Markets Authority criticising the industry for failing to pass on fully the 5p fuel duty cut announced in March.
Last week, the cost of filling up a family car hit £100 for the first time. The RAC hailed it as a ‘truly dark day for drivers’ and said the Government’s 5p tax cut was ‘paltry’.
In his letter to Dr Andrea Coscelli, chief executive of the CMA, Mr Kwarteng cites ‘widespread concern about the pace of the increase in prices at the forecourt’.
Fuel prices continue to rise with diesel at 204.9 per litre at Keele South services on the M6 this month
Tory MPs have urged Rishi Sunak to do more. Former Cabinet Minister Sir John Redwood called for an ‘urgent cut in VAT on petrol and diesel’, adding: ‘The Chancellor needs to limit the amount he plunders from us at the pumps.’
Harlow MP Robert Halfon last week called for a further fuel duty cut of 10p to 20p.
The watchdog has been asked to make recommendations on how to strengthen competition in the retail fuel market and the transparency that consumers have over prices.
Mr Kwarteng has tasked the CMA with presenting its initial report to him by July 7. A Whitehall source said: ‘It’s frustrating that our £5 billion fuel tax cut doesn’t seem to have been passed on everywhere.’