Chancellor Jeremy Hunt has come under pressure from an MP to appoint a Pump Regulator – to ensure falls in wholesale costs are reflected at the petrol pumps.
Shipley MP Philip Davies said the move would protect motorists from being “ripped off” and see action taken against retailers who failed to pass on savings.
Mr Davies said: “Prices at the pumps are slowly falling but these reductions are not reflective of the fall in the wholesale price. In eight weeks from early October to the beginning of December petrol prices on average fell by just three per cent despite the wholesale costs falling by more than 20 per cent. For diesel it was worse as wholesale costs fell by 25 per cent but there was little if any change in the price motorists were paying.
“This is not acceptable and retailers should not be cashing in at the expense of my hard-working constituents and businesses who rely on their vehicles.”
Mr Davies is one of 30 Conservative MPs calling for action. In a letter sent to Mr Hunt they said the move would cost very little but would make a big difference to many families and businesses up and down the country.
Mr Davies added: “I will also be speaking to the Prime Minister about the need for this role. Lowering prices at the pumps needs to be a priority as we tackle the cost of living crisis. As a fellow Yorkshire MP Rishi should know many of our constituents rely on driving as a source of income and therefore working-class individuals in constituencies like ours our hardest hit with increased costs.”
Mr Davies, a long standing campaigner for lower fuel prices, has also repeatedly called for a reduction in VAT on fuel and fuel duty cuts.