25th February 2018
Established 1872. Online since 1996.

Political row breaks out over petrol price inquiry

6 comments, , by , in News

A political row has broken out in the islands after the Office of Fair Trading (OFT) announced yet another investigation into why prices are continuing to rise at fuel pumps.

The OFT is to spend six weeks gathering evidence about whether competition is being curtailed, including a specific look at remote areas. The watchdog will also examine whether falling costs of crude oil are reflected in prices paid by motorists. It will publish its findings in January.

Shetland MSP Tavish Scott expressed his exasperation at the OFT for repeatedly failing to listen to the concerns of isles motorists who feel “ripped off” by high prices.

Mr Scott said: “Yet again the OFT has launched an inquiry into fuel prices – how many enquiries do the OFT need before they find Shetland is being ripped off? Will they actually listen, meet local customers and retailers now or is this yet another waste of time?”

He said a recent report showing Shetland motorists paid just over £250 more a year on fuel than those in Aberdeen had simply confirmed what islanders already knew.

“I have written to the OFT to invite them to the isles and to ask them, again, to help us all understand why we are paying so much at the pumps. It’s obviously not fair – I’m unsure why yet another expensive evidence-gathering exercise is needed, but let’s hope this one is actually a catalyst for change.”

But the SNP’s Highlands and Islands list MSP Jean Urquhart expressed disbelief at Mr Scott’s comments, describing him as “detached from reality” and questioning just what the Liberal Democrats have done on fuel prices as part of the UK coalition government.

Earlier this year, the coalition introduced a 5p-a-litre rebate scheme for remote areas including Shetland, but fuel prices remain considerably higher than in many other parts of the UK.

Petrol was hovering around £1.50 a litre and diesel as high as £1.55 a litre at some stations this week.

In a strongly-worded statement, Ms Urquhart said: “If Tavish really wants to see fuel prices reduced, perhaps he should have a word with his Liberal colleague in the Northern Isles, Alistair Carmichael.”

She said Mr Carmichael was part of a Tory-led coalition which had “consistently ignored” the SNP’s calls for a fuel duty regulator to be introduced to alleviate the appallingly high fuel prices in rural communities.

Ms Urquhart pointed out that the French government had this week struck a deal with fuel producers and distributors to cut the cost of fuel by six Euro cents per litre for three months.

“The Liberal Democrats are continuing to show that, despite taking the Conservatives’ 30 pieces of silver to form a coalition two years ago, they are delivering little for the islands and not giving their constituents the strong representation that they deserve.

“They are little more than a politically neutered human shield for an uncaring, Conservative-led government that continues to treat its most remote communities like dirt.”

Mr Carmichael welcomed the OFT’s announcement that prices would be reviewed, but expressed sympathy with those who are sceptical about whether it will result in any real changes.

“The government has taken action to keep prices down locally but it is clear by the number of emails and letters I receive on this topic every week that there are real issues within the market that need to be addressed,” he said.

“These issues fall squarely within the remit of the OFT and they need to ensure that they are meeting their obligations to consumers.

“Words are one thing, actions another. I will be looking for the OFT to take strong action against any oil company or wholesaler who can be shown to have abused their position and lined their pockets at the expense of local motorists.”

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6 comments

  1. Alun Rundle

    It’s not just the North and the Northern Isles being ripped off. A mere two months ago the price of fuel even here in South Wales was averaging about £1.29 .7 a litre. Now it’s averaging £1.36.9 And the price of crude hasn’t increased from what little I hear.

    The entire country of Great Britain and Northern Ireland is being ripped off!

    Reply
  2. O Jamieson

    @Alan Rundle

    I’m not trying to say that the entire country isn’t being ripped off, but those prices are still a fair bit cheaper that what we’re paying here. Last time I paid any attention it was 151.9p/L for diesel, 149.9p/L for unleaded, and I have a feeling it’s possibly gone up a penny or two in some places since then.

    Reply
  3. David Smith

    I was in Inverness today where unleaded was £1.31 and diesel £1.35. OFT investigations have not resolved the problem we have in Shetland and there’s not a great deal of evidence that we motorists are benefitting from the 5 pence rebate. We need a different approach, which the fuel duty regulator would offer. I still hold, however, that the main problem with the cost of fuel remains the amount of tax we pay, at approx 60% its the highest rate in Europe. Taxes which do not recognise ability to pay, such as fuel tax, are particularly unfair for those on low incomes.

    Reply
  4. Alun Rundle

    Oh, I appreciate that. It’s just something everyone should be concerned about.

    Reply
  5. S Dixon

    I was surprised to see that Shetland Isles fuel prices were slightly cheaper than the Isle of Man in July at about £1.40 for unleaded (cheapest I saw on my way up was at Aberdeen at £1.25).

    We’re now paying £1.45 for unleaded and £1.50 for diesel here, although we don’t have MOTs.

    Island communities are held to ransom, but it’s a price you pay for a better quality of life.

    Reply
  6. Colin Hunter

    When I went south on the 23rd June, Diesel was £1.39.9 in Lerwick. It was £1.34.9 in Aberdeen when I got off the boat, which is still a 10p difference given our 5p derogation. I get weekly emails from http://www.petrolprices.com and within a couple of weeks of being on the mainland, the price in Shetland had gone back to £1.43.9 then £1.46.9, all without an appreciable shift in price down there. By the time I got back in late July it was up around the £1.50 mark again, but had gone up by a penny or two down the road. So basically, within about 5 weeks the differential had grown from 10p in June, back to 16p or 17p or more by the end of July!
    The supplier has admitted publicly that it costs 2.7p a litre on the tanker from Grangemouth. THAT, then is how much more it should cost here, given that Distribution costs including road tankers, drivers, depots and retailers all exist down there too and have to take a cut. Let us not forget, that regardless of the 5p duty derogation, it’s still the crooks in Westminster that are the biggest rip-off merchants! But where is the other 13p or so going?? Answers on a postcard!

    Reply

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