We need to know the truth on fuel price fixing

In the middle of May the European Commission carried out raids on a number of oil companies and issued a statement which said that there were some ‘suspected violations’ relating to the Platts’ Market-On-Close (MOC) prices assessment process used to report prices for crude oil and related products. The EC statement also said ‘The Commission has concerns that the (oil) companies may have colluded… to manipulate the published prices for a number of oil and biofuel products.’ Price fixing at source on the oil market? And a further suggestion that this might have been going on since 2002 since which pump prices have risen by an astonishing 80 per cent!

This news is not far short of sensational and begs all sorts of questions.

If the oil companies have been manipulating prices then, of course, that would only be in an upwards direction. If that is proven, then just how much have prices been inflated in the last decade? And, if so, what are the repercussions relating to possible compensation, impact on VAT, future tax policy and, not least, fines for companies and punishment on individuals? And how has all of this impacted on consumer prices for the products which have had to be delivered using diesel costed at fraudulent prices? The price of oil has extensive repercussions.

The notion of the major oil companies getting together in a smoke filled room and cooking up the price of fuel is astonishing. But then not long ago a similar story relating to bankers and the LIBOR rate turned out to be true. So, it is clearly a possibility.

The investigation is now underway and the UK Office of Fair Trading is involved. Prime Minister Cameron says that the allegations are ‘very serious’ and that in the event of them turning out to be true then ‘major consequences will follow’.

In my innocence I actually hope that these accusations turn out to be some ghastly mistake. To think that such a vital market and price, which impacts on every individual and company, has been rigged to our disbenefit is truly horrendous. Whilst the Government’s excessive level of fuel duty snatch is highway robbery, at least they are up front and honest about it and make no secret of their take.

In our 21st century society the price of oil has become more important than the price of grain or bread. Its tentacles and consequences are spread far and wide. Any criminal manipulation would be diabolical.

We absolutely must get to the bottom of this.