A local MP has welcomed plans to investigate the oil trading industry after raising fears that spiralling costs were putting an unsustainable pressure on independent petrol stations in rural parts of his constituency.
Speaking in a House of Commons debate on petrol prices recently, Shrewsbury and Atcham MP Daniel Kawczynski outlined his concern that many smaller rural petrol stations were under threat of potential closure due to high prices from retailers, a move which would have a hugely damaging impact on rural constituents, not just in Shropshire, but across the country as a whole.
Following the debate, Energy Minister John Hayes MP pledged to write to regulator the Financial Services Authority highlighting his concerns about the oil trading market and whether prices were being manipulated to push up prices for motorists at the pumps.
The Office of Fair Trading is already considering whether to launch its own separate inquiry into anti-competitive practices in the petrol trade.
Daniel Kawczynski said: “I welcome the Minister’s pledge to refer oil market practices to the financial regulator. Petrol stations in rural areas are facing huge pressures due to rising costs, with many under threat of closure, an outcome that would have catastrophic consequences for local communities.
"For many of my constituents, especially those living in rural areas, a car is essential for them to go about their day-to-day lives. It is absolutely crucial they pay a fair price at the pumps, while it is just as important that the oil industry is transparent in its operations, and that any drop in the price of oil is passed on to hard-working motorists at the pumps in a timely manner.”
