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Government to consider fuel price comparison scheme

The government is considering introducing a fuel price checker which would allow drivers to compare the cost of petrol and diesel.

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

A recent review of the UK road fuel market revealed significant differences between rural and urban areas.

Fuel prices have increased in part due to the price of crude oil.

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

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On Thursday, Jerome Mayhew, a Conservative MP for Broadland in Norfolk, said he was “impressed by the effectiveness of price comparison requirements in Northern Ireland to achieve consistently lower forecourt prices” and asked whether the directive was being considered in England.

Ms Trevelyan replied that fuel prices in Northern Ireland have historically been lower than the rest of the UK for “a number of reasons”.

“But we strongly believe that the fuel price checker provided by the Consumer Council in Northern Ireland – together with cross-border competition with these petrol stations in Ireland and lower overheads – is indeed part of the reason for these costs,” she continued.

“We are considering this possibility to help us evaluate our own,” she added.

The average price for a liter of petrol is now 163.13p, up from 145.43p in January, according to the RAC Motoring Association. Average diesel prices are 183.94p, up from 148.73pa liters in January and the RAC forecast this is likely to rise.

A review of the road fuel market by the Competition and Markets Authority released in July found “cause for concern” in some parts of the industry.

It suggested that “an open data system could help consumers more easily access and compare local pump price information” – a suggestion welcomed in a government response on Wednesday.

The CMA is now conducting a “thorough” review of pricing. The first results will be published this autumn.

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

Fuel price competition usually takes place at the local level, meaning retailers set prices based on what local competitors are charging “and work to the advantage of motorists”.

If there are few competitors in an area, drivers may pay more for their fuel.

The CMA said, “A competitive retail fuel market can be particularly important for rural communities, which tend to rely more on automobiles for transportation.”

Rural areas are said to pay on average 1 to 2 pence a liter more for road fuel: “Although in some areas the difference will be significantly larger.”

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