OFT public meeting over Scottish Fuels’ probe 30/3/14
The Office of Fair Trading (OFT) is to hold a public meeting over a proposal to open up Scottish Fuels’ depots in the islands to rival suppliers.
The storage tanks at Stornoway and Lochcarnan are the only sites which can which receive bulk fuel from coastal sea tankers.
The move follows claims that Scottish Fuels is abusing its dominant position and pushing up petrol prices in the Western Isles.
The wholesaler also pledged to end contracts which forced require many filling stations on the islands to buy fuels exclusively from them for five years.
The OFT proposes to accept the commitments and would drop its probe into Scottish Fuels.
It says the move could pave the way for new suppliers to get a foothold in the islands
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The OFT said: “This would ensure that filling stations in the Western Isles have a greater choice of which wholesaler they buy fuels from.
“Increased competition between fuel wholesalers has clear potential to enable filling stations in the Western isles to obtain fuel at lower prices and to pass these savings on to their customers.”
The OFT wants islanders to tell them if they think the proposals go far enough.
It is hosting an open meeting at 6pm on Tuesday 8 April at 6pm in the Council Chambers on Sandwick Road, Stornoway.
In addition, written views can be e-
The consultation ends on 17 April.
The OFT closes on 31 March 2014, so the islands fuel consultation and any decision in the investigation becomes the responsibility of the Competition and Markets Authority )CMA). Correspondence sent to the OFT will be forwarded to the CMA.