Government to consider fuel price comparison scheme

The government is contemplating the introduction of a fuel price checker which would allow drivers to compare costs of petrol and diesel.

The Transport Secretary Anne-Marie Trevelyan said the online tool would be similar to one used in Northern Ireland.

A recent review of the UK's road fuel market found significant differences in rural and urban areas.

Fuel prices have been volatile due, in part, to the price of crude oil.

The pound has also been weak against the dollar which is making fuel even more expensive.

On Thursday, Jerome Mayhew, a Conservative MP for Broadland in Norfolk, said he'd been "struck by the effectiveness of price comparison requirement used in Northern Ireland to consistently have lower forecourt prices", and asked if the policy was being considered in England.

Ms Trevelyan responded that the price of fuel in Northern Ireland has been historically lower than the rest of the UK for a "number of reasons".

"But we absolutely consider that the fuel price checker, which is provided by the Consumer Council in Northern Ireland - along with cross border competition with those petrol stations in Ireland and lower overhead costs - are indeed part of the reason for those costs," she continued.

"We are considering that possibility to help us assess our own," she added.

The average price for a litre of petrol is now 163.13p, according to the RAC motoring association, up from 145.43p in January. Average diesel prices are 183.94p, up from 148.73p a litre in January, and the RAC predicts this is likely to rise.

It suggested "an open data scheme could help consumers more easily access and compare local pump price information" - a suggestion that was welcomed in a response by the government on Wednesday.

The CMA is now doing a 'thorough' review of pricing. Its initial findings will published this autumn.

In its initial review, the CMA found that "motorists face higher prices in some parts of the UK than in others".

It said fuel price competition usually takes place at a local level, meaning that retailers will set prices based on what local rivals are charging, "and work to the benefit of motorists".

If there are few competitors in one area, then drivers could end up paying more for their fuel.

The CMA said: "A competitive retail fuel market can be particularly important to rural communities, which tend to be more reliant on cars as a means of transport."

It said rural areas pay on average 1p-2p per litre more for road fuel: "Although in some areas the difference will be substantially more."