MP calls for transparency in fuel market

Alistair Carmichael MP has called for more transparency in the wholesale fuel market, saying that the current situation “leaves a lot to be desired”.

The Northern Isles MP’s comments came after he attended a fuel summit on Thursday in Glasgow which brought together MPs, the OFT and wholesalers.

Mr Carmichael said: “The meeting’s real usefulness was throwing in to sharp relief the difficulties caused by the lack of transparency. According to the figures supplied by GB Oils to the OFT, the profit margin in Orkney is 3.4 pence per litre (ppl) while it is 5ppl in Shetland. I would like to know what that difference comes from. The obvious answer is that there is more competition in the wholesale market in Orkney than there is in Shetland.

“To be fair, GB Oils say that there are other factors at play involving operating costs. I think that we need to be told how the operating costs can be so markedly different. I have been promised historic data for the period from 2007 when GB Oils took over. That should shed some light on the situation.

“The OFT investigation in the Western Isles should now run its course but will, I hope, reach an early conclusion. Once we see the lessons from there, we should be asking whether the same rules might be applicable in the Northern Isles.”