§ The Marquess of Ailesburyasked Her Majesty's Government:
Whether they regret the disappearance of price competition between petrol stations in London and a large area to the west and south-west of London; and whether, if so, they contemplate action to restore such competition; and
Whether they are able to identify any geographical areas where price competition between petrol stations still survives.
§ Lord LyellThe evidence available to the Government does not suggest that any breakdown in price competition has occurred within the petrol retailing sector. As has been the case over the last two years, many representations have been received in recent months from retailers about the effect upon them of keen competition. Since the petrol market is essentially a series of local markets, competitive pressures, and thus prices, do inevitably vary somewhat from place to place; they also tend to vary seasonally. 617WA Recently variations in prices between areas have been reduced as a result of changes in the levels and forms of price support that oil companies grant petrol retailers. These are not factors over which the Government have any control. Despite recent increases, the net price of petrol in the United Kingdom remains virtually the lowest in the European Community. The Government are satisfied that overall there is effective competition.