§ Mr. McCrindleasked the Secretary of State for Trade if he will consider referring to the Director General of Fair 283W Trading the practice of oil companies fixing retail prices; whether this is in the interest of competitive trading; and if he will make a statement.
§ Mrs. Sally OppenheimI have been regularly in touch with the Director General about a variety of oil company trading practices. In his review of October 1980 the Director General concluded that these practices, including the oil companies' ability to fix retail prices at certain of their own sites, had no adverse effects on competition in the market. He has assured me that he is continuing to keep the market under review.
§ Mr. McCrindleasked the Secretary of State for Trade if he will consider referring to the Director General of Fair Trading the practice by oil companies in tied retail operations of not permitting retailers to purchase on the open market if the oil companies are unwilling to match competitors' rates.
§ Mrs. Sally OppenheimThe Director General is aware of this practice. He has been guided by the findings in the Monopolies Commission's report on the supply of petrol—1965—following which the oil companies gave undertakings that the maximum period of solos ties in agreements with petrol retailers would be five years, and the Commission's conclusion in its further report—1979—that a significant number of independent retailers were free in consequence to change their suppliers in any given year.