Britain’s Competition and Markets Authority (CMA) has launched an in-depth investigation into fuel refineries after the price of petrol at the pump rocketed.
The UK competition regulator will examine the differences between fuel prices in urban and rural areas, as well as the widening disparity between the crude oil price when it enters refineries and the wholesale price when it exits.
Roughly 40% of the current growth in fuel prices was attributed to hikes in how much refineries have been charging retailers for wholesale, the CMA said on Friday.
Differences between crude oil cost and wholesale prices more than tripled to 35p from 10p in the previous year, while fuel retailers have, on average, maintained their 10p per litre gap between wholesale and consumer prices.
Sarah Cardell, CMA general counsel, commented: "While there is no escaping the global pressures pushing up fuel prices, the growing gap between the oil price and the wholesale price of petrol and diesel is a cause for concern.
"We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it."