The Office of Fair Trading (OFT) is consulting on two important changes to the island fuel market. The change to the long-term contractual relationship between retailer and wholesaler, and the enabling of more wholesalers to enter the market.
Commenting Angus MacNeil said:
“While wholesaler competition exists in parts of the islands and has led to tremendous changes in retail prices particularly in Lewis. Also the ending formally of contracts that ties retailers with wholesalers for the lengthy period of time is welcome. This new proposal in the OFT plan is to ensure that there is competition between wholesalers at Loch Carnan while also extending the agreement for the period of competition at the storage facility in Stornoway.
“These are calls I made for several years ago, of wholesaler competition and the ending of fuel contracts with retailers and I am glad that it is now coming to fruition in all areas of the Western Isles and the main beneficiaries should ultimately be the customers at the pumps.
“Having spoken to the OFT they have said that they will be monitoring the effects of this at all levels of the fuel market especially at the retail point. We have seen a huge change in retail pricing in Lewis, led by the retailers in Back and Barvas and obviously the OFT will keep an eye on other areas of the Western Isles where change can now come if these consultation suggestions are followed through.”
Any person wishing to comment on the commitments should submit their views to the OFT by 17 April 2014 to:
Western Isles Fuel Commitments Consultation Office of Fair Trading Fleetbank House 2-6 Salisbury Square London EC4Y 8JX Email: WIFCConsultation@oft.gsi.gov.uk