Chancellor Rachel Reeves has warned petrol retailers of a “shared obligation” to keep prices down for motorists amid soaring prices and war in the Middle East.
The Petrol Retailers Association (PRA) had threatened to pull out of the Downing Street meeting with Ms Reeves and Energy Secretary Ed Miliband hours before, citing “inflammatory language”.
That language had led to an increase in abuse against forecourt workers, the PRA said.
The meeting only went ahead after assurances from the Treasury that it would be held largely in private, with the PRA’s Gordon Balmer saying the government did not apologise for its language.
Chancellor of the Exchequer Rachel Reeves and energy secretary Ed Miliband at Friday’s meeting. Pic: PA
Mr Miliband warned executives from firms including Asda, BP, ExxonMobil and Shell that the government would not tolerate “unfair practices” in the industry.
The RAC said the average price for a litre of unleaded had risen by 8p since the start of the crisis, with the cost now its highest for 18 months.
The chancellor hosted the industry chiefs in 11 Downing Street on Friday in response to rising concern about the impact of the Middle East crisis on household finances.
Ms Reeves thanked the petrol bosses for their cooperation but told them she wanted an “open and frank conversation” with them.
She said: “We have concerns around the high prices, and we do have a shared obligation.”
Despite this, the chancellor has not announced any change in her decision to gradually phase out a 5p cut to fuel duty, starting with a 1p increase from September this year.
The average litre of unleaded has already risen from 132.83p to 140.60p, according to the RAC.
Following the talks, Mr Balmer said: “The meeting went very well. We engaged in constructive discussion with the government on this, and we are working collaboratively with them.”
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An official summary of the meeting said the attendees “agreed to continue working in the shared interest of motorists on this really important issue”.
Ms Reeves has previously asked the competition watchdog to “crack down” on “rip-off” fuel prices to guard against profiteering over the high oil prices due to the Iran war.
The government has already promised to intervene if companies engage in “unfair” practices that would hit customers facing a rise in the price of home heating oil, which is not covered by Ofgem’s energy price cap.
However, the AA warned motorists “will be stung” with inevitable rising costs because of a global hike in prices and called on Ms Reeves to delay a planned increase in fuel duty.
