Chancellor Rachel Reeves has warned petrol retailers have a “shared responsibility” to keep prices low for motorists amid rising prices and war in the Middle East.
The Petrol Retailers Association (PRA) had threatened to walk out of a Downing Street meeting with Ms Reeves and Energy Secretary Ed Miliband just hours earlier, citing “inflammatory language”.
The PRA said that language had led to an increase in abuse against forecourt workers.
The meeting went ahead only after assurances from the Treasury that it would be held largely in private, with the PRA’s Gordon Balmer saying the government had not apologised for its language.
Rachel Reeves, the Chancellor of the Exchequer, and Ed Miliband, the Energy Secretary, participated in the meeting on Friday. Photo: PA
Mr Miliband warned executives from companies including Asda, BP, ExxonMobil and Shell that the government would not tolerate “unfair practices” in the industry.
The RAC said the average price of a litre of unleaded has increased by 8p since the start of the crisis, and the cost is now the highest it has been in 18 months.
The Chancellor hosted industry leaders at 11 Downing Street on Friday in response to growing concern about the impact of the Middle East crisis on household finances.
Ms Reeves thanked petrol bosses for their support but told them she wanted “open and frank conversations” with them.
“We are concerned about high prices and we also have a shared responsibility,” he said.
Despite these assurances, the Chancellor has not announced any changes to his decision to gradually phase out the 5p cut in fuel duty with a 1p increase from September this year.
According to the RAC, the average litre of unleaded has already risen from 132.83p to 140.60p.
After the talks, Mr Balmer said, “The meeting went very well. We had constructive discussions with the government on these issues and we are working closely with them.”
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An official summary of the meeting stated that attendees “agreed to continue working on this important issue in the common interest of motorists”.
Ms Reeves had previously asked the competition watchdog to “crack down” on fuel price “cutting” to avoid profiteering on oil prices rising because of the Iran war.
The government has already promised that customers facing a rise in the price of home heating oil will be harmed if companies engage in “unfair” practices, which are not included in Ofgem’s energy price cap, and it is crucial for the government to implement measures to protect consumers from these potential price hikes.
However, the AA warned motorists will be “stunned” by the inevitable rising costs due to the global rise in prices and called on Ms Reeves to delay a planned increase in fuel duty.
