RMI Petrol has welcomed a commission appointed by the G20 nations calling for stricter regulation of price-reporting agencies to prevent the manipulation of oil markets.
The report, published by the International Organization of Securities Commissions (IOSCO), confirms that the price reporting companies are at risk from oil prices being manipulated, and calls for greater regulation.
It also suggests that there is a risk that a price-reporting agency’s benchmark price can be manipulated by the submission of false prices or by over- or under-stating the volume transacted.
The report follows RMI Petrol’s submission of a detailed report to the Office of Fair Trading (OFT) last month, alleging anti-competitive pricing across the UK based on evidence gathered from their members.
Brian Madderson, RMI Petrol chairman, said: “The timing of this report for the Group of 20 Nations reinforces our call for the OFT to start a study into the UK market for road transport fuels.
“We highlighted potential flaws in the referencing system as one of the fuel price mechanisms needing proper investigation. Businesses, motorists and independent retailers all need much greater price transparency and Government must support the request for the OFT study.”
A final report to the G-20 Finance Ministers is due to be submitted in June 2012.