HC Deb 29 June 1981 vol 7 cc564-5
13. Mr. Beaumont-Dark

asked the Secretary of State for Trade how many representations he has received from petrol retailers expressing concern over the domination of retail sales by the major oil companies.

19. Mr. Mudd

asked the Secretary of State for Trade how many representations he has received from petrol retailers about the domination of retail sales by the major oil companies.

Mrs. Sally Oppenheim

During the 12 months to 18 June I received representations from 63 petrol retailers on this subject.

Mr. Beaumont-Dark

Does my right hon. Friend agree that one of the great problems at present is that the major multiples are so dominating the petrol distribution market that many people living in rural and semi-rural areas will end up having no chance of service or petrol? Does my right hon. Friend further agree that the time has come to make sure that the needs of individual users are as respected as the needs of the great multiples?

Mrs. Oppenheim

While petrol pricing among retailers is highly competitive and of great benefit to consumers, I understand my hon. Friend's concern. There is market dominance in the supply of petrol by the big five oil companies and a degree of distortion of competition as a result. That is why the Director General of Fair Trading, following the Monopolies and Mergers Commission report in 1979, published his report last October and is keeping the market under review. I have expressed my concern to him and asked him to keep me in close touch with the rate of decline in the number of independent retailers. So far, I can report that that decline is not substantial.

Mr. Douglas

Will the Minister expain to the bemused consumer how we have managed to achieve a $4 per barrel reduction in North Sea oil while simultaneously the multinationals in operation here have managed to put up the retail price of petrol?

Mrs. Oppenheim

I understand the point, but the answer is simple. Prices have been raised because of refining and retailing losses.

Mr. John Fraser

Is the Minister satisfied that the wholesalers are not engaging in discriminatory discounting arrangements which were supposed to be ended after the commission's last report? The Minister is no doubt aware of the dissatisfaction of the retail trade with the last investigation by the Monopolies and Mergers Commission. Is she thinking of re-referring the matter?

Mrs. Oppenheim

I am sure the hon. Gentleman will know that certain of those discriminatory practices, such as maximum pricing, have not, in the view of the Director General of Fair Trading, warranted a re-reference because the last reference was in 1979. The other discriminatory practices to which I believe he is referring were revealed in the 1965 Monopolies and Mergers Commission report. Those agreements had to end five years after that report. Therefore, the large majority of retailers are no longer bound by those five-year contracts to which I believe the hon. Gentleman is referring.