The UK Government has taken action to protect Borderers struggling with the increasing fuel costs. Fuel prices have increased significantly in recent months due to Russia’s invasion of Ukraine and the recovery of economies from the Covid-19 pandemic.
The UK Government has cut fuel duty for twelve consecutive years and recently delivered a £5bn package of relief to support fuel consumers. However, recognising differences in the prices of forecourts in some towns, the UK Government is taking action to ensure that consumers get a fair deal for fuel.
Locally, Mr Lamont has identified increased fuel prices in the Borders compared with more urban parts of Scotland. The website PetrolPrices.com is recommended by Money Saving Expert and compares the cost of fuel offered by different providers in the local area. The Petrol Prices search engine confirms a concerning disparity between prices available to rural and urban fuel consumers.
On 22 June, the cost of unleaded petrol at Asda at Straiton was 183.7p, whereas the cost at Asda in Galashiels was 187.7p. Similarly, the cost of unleaded petrol sold by Shell at Dalkeith was 189.9p but was 192.9p in Jedburgh. On diesel, Jet’s price in Tranent was 192.9p which was significantly lower than the 199.9p charge at the Kelso branch. The cost of diesel at Morrisons in Hawick was 198.9p, two pence higher than in Moredun (Gilmerton Road) where the price was 196.9p.
The UK Government has requested that the Competition and Markets Authority (CMA) conduct an urgent review of the fuel market and a longer-term market study to establish whether the retail fuel market has negatively influenced consumer interests.
During the review process, the CMA will evaluate the health of competition, geographical dimensions including localised competition, and potential avenues to increase competition and transparency in the fuel market.
By conducting market studies, the CMA can identify driving forces causing markets to work poorly. The CMA will then be able to address competition and consumer protection problems and enforce and advocate on these issues.
John Lamont MP said:
“Many local residents have contacted me in recent weeks raising concerns about rising fuel costs. People are understandably worried about being able to afford to go to work and attend health appointments. I completely recognise the additional pressure the rising cost of living is placing households under.
“The terrible war in Ukraine and global economic recovery from Covid-19 is putting fuel consumers under increasing pressure.
“However, it is clear that several fuel companies and supermarkets selling fuel are giving Borderers an unfair deal. Just an hour up the road on the outskirts of Edinburgh, urban drivers are getting better value for money.
“I will be closely monitoring the findings of the urgent and longer-term fuel market studies by the CMA and encouraging the Government and CMA to act swiftly on these findings.”
