OFT continue investigating island fuel distribution

The Office of Fair Trading is to carry on with its formal investigation into the distribution of road fuels in the Western Isles by GB Oils.

GB Oils trade locally under the name Scottish Fuels.

In mid July the watchdog, which has been conducting an investigation into the road fuel supplier since the start of this year, made the decision to proceed.

It will now carry out “further analysis” and continue to “gather” information.

By mid October this year it will then make another decision on whether to carry on or close the investigation.

Asked for an update on how the investigation is going an OFT spokesperson said: “I’m afraid that we are unable to comment any further than the information already published.”

The investigation is under Chapter II of the Competition Act 1998 and relates to a suspected exclusionary abuses of a dominant position in the relevant market.

It is looking into concerns about the contractual arrangements for wholesale supply of road fuels in the Western Isles offered by GB Oils (Scottish Fuels).

The watchdog is also looking at the rebates paid to filling station customers in the Western Isles by the company and any other payments that may have been made to filling station customers in the Western Isles.

The OFT does however state: “This case is at an early stage and no assumption should be made that there has been an infringement of competition law.”