Petrol Prices

Debate between Ed Davey and James Paice

Wednesday 15th May 2013 Commons Chamber

[Mr Davey]

It is important for the hon. Gentleman, and all right hon. and hon. Members, to realise that these are very early days in the investigation. These are allegations only and we should not jump the gun. As he knows, because the allegations are so serious, both UK and European law allows competition authorities to levy serious fines—dependent, obviously, on the particular transgression—should a company be found guilty. The hon. Gentleman will have to wait, but he can be reassured that there are powers to levy heavy fines.

[Sir James Paice (South East Cambridgeshire) (Con)]

I welcome my right hon. Friend’s robustness regarding such manipulation—if, indeed, the raids produce evidence of such manipulation—but will he tell the House how long he thinks it will be before the European Commission is able to report on the issue? In line with those of my hon. Friend the Member for Harlow (Robert Halfon), and others, my constituents in South East Cambridgeshire cannot accept that the market is working fairly. In our area we pay a higher price for petrol and diesel than in most other parts of mainland England, yet only 20 miles away, the same retailers and supermarkets are selling road fuel for 1p, 2p, 3p, or in some cases 5p, a litre less. That cannot be a fair marketplace.

[Mr Davey]

I am grateful for my right hon. Friend’s question and his support for the robust action that we propose to take, supporting our competition authorities. He asked how long it will take, but I am afraid it is impossible to give a straight answer to that. We have seen with the Ofgem and FSA review into allegations of gas market inflation that such things can take some time, in order to ensure that the allegations are looked into seriously and robustly, as consumers and markets should expect. Equally, I cannot give a timetable for the conclusion of the European Commission’s investigations.

My right hon. Friend and other colleagues are concerned that the OFT did not find problems in the market, and I have heard that point. It is worth remembering, however, that not only did it mention the absence of price information on motorways, as I mentioned earlier, but it said that it did not rule out taking action in some local markets if there is persuasive evidence of anticompetitive behaviour. The OFT is ready to act, but we need the evidence.