THE COMPETITION AND Consumer Protection Commission (CCPC) said it can find no evidence of co-ordinated pricing behaviour among service stations earlier this year.
The CCPC conducted an analysis of the retail motor fuel sector with particular focus on the 19-day period between 2 and 20 March of this year.
It found that rising international prices drove increases in prices at the pump in the period leading up to the excise cut rather than a lack of competition.
The CCPC said it received over 200 complaints by consumers who were impacted by significant increases in fuel prices at the pump. This was after the Government announced that excise on petrol would be dropped 20 cent per litre and diesel by 15 cent.
The watchdog received detailed pricing information relating to 50% of the service stations in the State.
The research shows that increased international prices were behind price increases for consumers in the period leading up to the Government’s excise cut, rather than stations illegally coordinating their prices or a lack of competition.
Speaking on the report, Chairperson of the CCPC Jeremy Godfrey said: “The analysis shows that there was effective price competition between petrol stations in all counties in the State.
“Changes in the price of fuel at the pump were largely driven by changes in the wholesale price that petrol station operators had to pay for their supplies. Following the excise duty cut, the difference between pump price and the wholesale price generally remained within the normal range for the industry.
“However, pump prices did not immediately fall on the day the excise duty cut came into effect and it is understandable that consumers were concerned about this. Our analysis found the main reason was that it took time before petrol stations received supplies of fuel that had been taxed at the lower rate.”
The CCPC said that the delay in consumers seeing a reduction in the pumps varied from station to station because of difference in stock levels and differences in the supply arrangements between petrol stations and their suppliers.
“The experience of an excise duty cut taking time to work through to pump prices is also observed in other markets internationally. We recommend that policymakers take this into account when communicating with consumers about the likely impact of comparable changes in the future,” Godfrey added.
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