RHA rebuffed by 'air trading office
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-1E OFFICE of Fair Trad; has turned down the oad Haulage Association's im that the major oil coinflies arc abusing their eration of the bulk dery irket.
Since fuel prices rose rally (and fell subsequently) a ar ago, the RHA has been ncerned about the deals its :misers get from the oil mpanies, and has been escially worried that the cape market of hauliers has en used to subsidise petrol motorists.
But lengthy investigations the ObT have produced iufficient evidence of nonmpetstive behaviour to rsuade it to refer the matter the Monopolies and Merrs Commission.
It has told RI A secretary Len Harper that the details of the oil companies dery Supply contracts show that customers are unlikely to be locked into one oil company they can obtain cheaper supplies from another.
"We were concerned that smaller users were less likely to he able to negotiate rebates and may be discriminated against," the OFT told the RI IA. But it says rebates differ little according to the size of the operator.
The oil companies have "formally and explicitlydenied any collusion, contact or co-ordination with each other over scheduled oil prices.
'[he OFT also considered invoking the Fair Trading Act's powers to investigate the management of a market where two or more cons
panics share 25 per cent or inure of a market and restrict competition.
But the oil companies say it is difficult for one supplier to charge a significantly higher price for oil without losing business.
They say it is "not surprisingthat one company's price change is followed by virtually identical changes by the other eonipanies.
In answer to the °FT's suspicions about the speed ()toil companies' responses, the companies told it that their information systems make it possible to react instantaneously.
The OFF says it is now "not quite as sceptical." as it was before about the timing and size of' scheduled price changes. 'Else RI IA has still to decide what to do next. but Harper said this week that it is "disappointing in as much as we have to ,iccept what they tIme OFTI
He said the RHA wants details of the "magic factor' that keeps prices moving together, • An independent company, Oil Price Assessment, says there was a lp per litre increase in discount on the bulk price of dery last iii iii That took the price at the end of last month to around 28.5p per litre (l29.(ip per gallon), 7.5p per litre lower than February 1)85,