The Freight Transport Association (FTA) has dismissed the OFT report into the fuel supply market saying it will do nothing about the high level fuel duty, which is the real issue affecting retail prices.
The report agreed with points made within the FTA evidence, stating that the rises in pump prices for petrol and diesel over the past 10 years have been caused largely by increases in crude oil prices, tax and duty and not a lack of competition.
FTA monitors spot diesel prices against a benchmark price set in the Rotterdam fuel market, and says the two have shown a consistent correlation over many years, with the slight excess of the price paid over benchmark accounted for by distribution and delivery costs.
James Hookham, FTA managing director policy and communications, said: “This report from the OFT won’t change anything, and FTA believes it is only a distraction from the real issue of fuel duty and the Chancellor still has to do something.”
He said the FTA believes that fuel duty still remains at the heart of the pump price problem, and through its work with FairFuelUK, it is calling on the Government to recognise in its forthcoming Budget the positive economic benefits that a cut in fuel duty could have.