The Office of Fair Trading (OFT) has launched a probe into the high cost of fuel in rural communities in Northern Scotland and other remote areas.
The government agency is investigating the wholesale and retail fuel supply arrangements to districts and islands which doe not benefit from active competition or supermarket pump prices because they too distant from high populated cities and towns.
The OFT is now calling for evidence from the public as it investigates the price difference between the islands and other areas of Scotland and consider if the gap is fair.
Last week Sam Chambers, the non-
At a heated meeting in Stornoway, Scottish Fuels insisted their wholesale prices are fair and say they will open up their books to the OFT.
The OFT says it recognises that prices of many goods and services are frequently higher in remote communities, there can be fewer suppliers available, and access to key services such as shops, dentists, chemists, banks and public transport can be limited.
It has received representations that fuel prices concern those who need to travel long distances to get to school, to work or to the shops. Whilst shopping online may expand opportunities for broader choice and quality, deliveries to more isolated areas can sometimes be problematic or costly.
As part of its inquiry, the OFT will be running workshops with residents in seven locations across England, Scotland, Wales and Northern Ireland.
These include Devon, Northumberland, Shetland, Highland, Gwynedd, Bridgend and County Tyrone.
The locations have been chosen to reflect the diverse nature of the UK's remote communities
and to include coastal, inland, island and mainland areas, and those with varied
socio-
The OFT will also look at evidence and experience from across the entire UK and will explore how other countries address specific market issues arising in isolated communities.
Kyla Brand, OFT Director, said: "Geography and population density can have a major impact on the cost and accessibility of goods and services to consumers, and on how businesses operate. We want to get a clearer picture of these issues and understand and explain some of the reasons behind them. We also want to explore what the OFT, or other bodies could do to reduce the downsides, and maximise the benefits of remoteness."
Official probe into higher cost of fuel on islands 10/2/12