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OFT to examine 'high

27th May 1999, Page 14
27th May 1999
Page 14
Page 14, 27th May 1999 — OFT to examine 'high
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Which of the following most accurately describes the problem?

motorway prices

• by Charles Young The prices charged by motorway service stations are being examined by the Government 'allowing complaints that they are too high.

The Office of Fair Trading has asked the top three opera :ors—Granada, Welcome Break and Roadchef—to provide it with information about their prices and costings particularly in relation to the restaurant area.

An OFT spokesman says it is not yet a full investigation: "We have to look at the answers we receive. If we find evidence [of inflated prices] we will launch a full investigation."

A similar inquiry was carried out in 1994, but it found no evidence of anti-competitive prices. it was found that the high operating costs of the facilities justified the prices.

The news will be welcomed by drivers, who have long complained about the prices charged in service stations.

Last year a Commercial Motor survey found almost a pound's difference between identical sandwiches sold in supermarkets and service stations. A bottle of milk was 50% more expensive, and bottled water 33% more expensive.

There were also substantial discrepancies between the four sites CM visited: Clacket Lane on the M25, Truckworld at Thurrock, Brampton BP Services and Alconbury near Peterborough.

Earlier this year, Roadchef and Elf were asked to explain the high price of diesel at Clacket Lane. They said the price reflected the high set-up costs of the station.

Granada, the largest operator, has 41 motorway sites, in addition to more than 400 Little Chef restaurants on other major UK roads.

Welcome Break, owned by Bahrain-based Investcorp, has 22 sites, and Japanese-owned Roadchef has 17 sites.

Tags

Organisations: Office of Fair Trading
People: Charles Young

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