ACS Backs Forecourt Retailers Over Fuel Price Volatility

The Association of Convenience Stores will be attending a roundtable with the Chancellor Rachel Reeves and Energy Secretary Ed Miliband in Downing St this afternoon, explaining to the Government that prices at the pumps are as a result of wholesale price volatility, not profiteering by businesses.

The crude oil price has fluctuated wildly in recent days. Over the past month, the price of crude has increased by over 50% as a result of the war in Iran, peaking at around $120 a barrel on Monday.

Forecourt retailers do not purchase fuel all at the same time. Some larger retailers can purchase their petrol and diesel on up to a two-week lag, while smaller independent forecourts typically purchase with much shorter lag times, sometimes for the next day.

This function of the market means that prices across the sector will vary more significantly when there are large short-term moves in the wholesale price of fuel, as we've seen in recent weeks.

ACS chief executive Ed Woodall said: "The rise in wholesale fuel prices is impacting every forecourt retailer, motorist and household in the UK. This is result of the conflict with Iran, not fuel retailers choosing to increase pump prices."

ACS has been working with the Government to raise awareness of the Fuel Finder scheme, and has previously raised concerns about the adoption of the scheme when the launch of the registration portal was delayed at the end of last year. The CMA have stated that between 2nd February and May, their focus would be on helping businesses comply with the live beta version of Fuel Finder, rather than on enforcement action.

The Fuel Finder Scheme requires retailers to report fuel price changes within 30 minutes and provide details on eight facilities and amenities, including Adblue pumps, Adblue packaged, LPG pumps, car washes, air pumps, water filling, 24 hour fuel, and customer toilets.

Any retailers who are not yet signed up to Fuel Finder can do so here: https://www.gov.uk/guidance/fuel-finder/signing-up