INVERCLYDE MP Ronnie Cowan says a watchdog probe into petrol pricing has vindicated his view that a 'cartel' is in place leaving local customers paying far too much at the pumps.
The Competition & Markets Authority, an independent UK Government body, conducted an investigation on pricing and has highlighted a lack of competition.
It is now to quiz supermarket bosses in a bid to find out why petrol prices have risen higher than inflation alone would dictate, and why there has been a decrease in competition, leading to higher local prices.
Mr Cowan says scores of constituents have contacted him over the high cost of filling up in Inverclyde over many months, which have seen prices rise significantly higher than other areas in Scotland.
The CMA found that while most of the increases at the pump can be put down to inflation, there is a lack of competition among supermarkets which have pushed up prices - and profits.
Evidence shows motorists are paying about 5p per litre too much at the pumps because of a lack of competition.
The CMA's Road Fuel market study also found that at least one supermarket has increased its margin targets as inflation bites ever deeper.
Last year the MP described supermarket prices in Inverclyde as a 'cartel' and despite voicing his concerns, says he did not receive an adequate explanation from supermarkets as to why Inverclyde petrol is more expensive than in the rest of the country.
Mr Cowan said: "Last year I said I believed local supermarket prices in Inverclyde indicated a cartel at work.
"The CMA report, where it speaks of lack of competition, has vindicated this view.
“Only last week, I’ve had constituents contact me to raise their concerns with petrol prices in Inverclyde being 10p more expensive than other parts of Scotland.
"It is clear that residents in Inverclyde are continuing to suffer from inflated petrol prices and this is causing more hardship during a cost-of-living crisis.
“The CMA has said that fuel margins, that is profits, have increased across the retail market, but in particular for supermarkets, over the past four years.
"Alongside this, the CMA is not satisfied that supermarkets have all been sufficiently forthcoming with the evidence they have provided."
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Mr Cowan says that the higher prices being charged locally must come down into line with other areas.
He told the Tele: "It is vital that swift action is taken to address the petrol prices differentiation here in Inverclyde and I welcome the news the CMA will now conduct formal interviews with the supermarkets’ senior management in order to get to the heart of the issues.
"Plenty of people suspect that some big producers and retailers have pushed prices up under the cover of inflation.
"Inflation is one thing and could be the result of UK Government incompetence, Brexit pushing up prices, or world events such as the war in Ukraine, but greedflation is another matter and is completely unacceptable.
"My constituents will be disgusted if they find out that some companies have been using the cost-of-living crisis to increase profits at a time when families are struggling to put food on the table.
"I will be following the CMA's enquiries very closely."
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