Petrol price 'rip off' may be halted by law

A COMPETITION law could be used to control the price of petrol. Deputy Leon Gallienne, who is leading investigations into the need for legislation to regulate the economy, spoke out yesterday in the ongoing fuel rip-off row.

His competition law review working party has been looking at the situation in Jersey, where a major report was commissioned into the petrol market.

Treasury minister Lyndon Trott has already called for some competition control on petrol.

A draft report on this has gone before Commerce and Employment and is being finalised before being considered by the Policy Council.

It should go to the States within the next few months.

Guernsey Motor Trades Association chairman Dave Beausire said yesterday that any cut in the price of petrol at the pump could mean the end of some of the island's smaller retailers. He said there were at least a dozen stations which pumped as little as 0.5m. litres per year and a reduction of just 2.5p per litre would mean them operating at a loss.

Mr Beausire was responding to a fresh accusation of a fuel rip-off by Deputy Mike Torode, who has conducted his own survey which, he says, shows people are paying 20p per litre more than in the UK after duty has been removed.

'I don't know what the wholesalers make on fuel, but I don't believe that they are ripping people off and they provide a service to the people of Guernsey,' said Mr Beausire.

'We appreciate that the price of petrol will always be a topic of conversation but we are sick to death of members of the States making false accusations.'

Deputy Torode made his claims even though he turned down an invitation to view Mr Beausire's books at Le Mont Saint Garage.

Mr Beausire said that Deputy Trott, who had also been critical of petrol prices, changed his opinion after viewing the facts.

Deputy Trott met a GMTA delegation last month.

'After that meeting, Deputy Trott said he thought the retailer margin was reasonable and fair,' said Mr Beausire.

The minister said then that he had been told the retail margin in Guernsey was less than in Jersey.

The three companies which supply petrol to the Channel Islands could sell more fuel through two stations on the M1 than they do in Guernsey.

'If I was them, I'd be wondering if it was worth it,' he said.

'He 'Deputy Torode' is so far out with his calculations as to what the retail mark-up on petrol is that it's nonsense. If politicians continually make false accusations against businesses, it will reduce the confidence of anyone wanting to operate one.'

He said Deputy Torode's claims that he had done his homework were rubbish. 'If he had done his homework, he would have known enough to ensure he did not make such ridiculous statements again,' said Mr Beausire.

'He would not get any gold stars from my teacher, that's for sure.'

The fuel industry was disappointed that the report into the petrol market in Jersey made no comparisons with Guernsey.

The report, published in December 2004, was undermined by no reference to Guernsey, said Jersey Motor Trades Federation spokesman Peter Tabb.

'I am disappointed by that, because Guernsey is a similar jurisdiction with similar through-puts and margins more similar to Jersey than the UK,' he said.