BP and Shell, as well as a number of other oil companies, are under investigation by the European Commission, accused of breaching anti-competitive agreements that ‘may have prevented others from participating in the price assessment process.’
In a statement, the European Commission said: “The Commission has concerns that the companies may have colluded in reporting distorted prices to a Price Reporting Agency to manipulate the published prices for a number of oil and biofuel products."
Fuel prices have almost doubled since 2002, from 71 pence per litre to an average of 133 pence today.
Robert Halfon, MP for Harlow, has said that the increases in fuel costs have been "crushing families across Britain" and that “motorists are being taken for a very expensive ride.”
Halfon also added: "This impacts on the lives of millions of people up and down our country, not just people who drive cars - it affects food prices and transport and business and everything else."
BP is one of three companies being investigated by the European Commission.
## The Reaction
FairFuelUK, a group organised to fight for lower petrol and diesel prices, have long campaigned for an investigation into the price of fuel. Lead spokesman and television presenter Quentin Willson has previously called for both the UK Office of Fair Trading and UK Financial Services Agency to launch an inquiry into oil price manipulation.
Quentin Willson today commented that the raids have “come as no surprise” to FairFuelUK and that they “did warn Government about this [price manipulation] on numerous occasions.”
The Petrol Retailers’ Association (PRA) have also welcomed the European Commission’s move to investigate alleged price fixing, after the Office of Fair Trading refused to take significant action on a complaint they submitted in January 2012.
Brian Madderson, PRA Chairman, commented, “Independent retailers hope this Europe-led investigation will help to provide the proper price transparency that consumers and businesses deserve and need.”
Both BP and Shell have signalled their intent to cooperate fully in the investigation, but refused to make further comment.
With the high price of fuel, many drivers may choose to turn economical cars to cut costs at the pump.
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