Scottish Fuels accept deal to ditch probe 24/6/14
Scottish Fuels has agreed to stop its controversial contracts requiring filling stations
to buy fuel exclusively from them for five years.
Cheaper wholesale prices through rebates are only available to retailers if they
agree not to use any rival supplier.
Scottish Fuels - owned by Certas - will ditch tying-in retailers in a deal which
will see the Competition and Markets Authority (CMA) ending a probe into alleged
unfair trading practices at the oil firm.
In addition, any potential competitor can draw fuel out of the wholesaler’s coastal
depot at Loch Carnan, South Uist, and at Stornoway for five years.
The CMA accept these commitments will not directly instantly mean cheaper prices
but could kickstart competition in the market by allowing the entry of rival wholesalers.
Weaker pledges to commit to depot access for just 2.5 years for Stornoway were rejected
at a heated public meeting earlier this year.
Ann Pope, CMA Senior Director of Antitrust Enforcement, said: “We are extremely pleased
to have secured these commitments from Certas, which offer a real opportunity for
rival fuel distributors to enter the Western Isles market on a long-term basis.
“This should ultimately help make fuel prices more competitive and benefit people
and businesses in the islands.”