LPG Users Could Be Paying Too Much
Users of liquefied petroleum gas could be paying too much for their fuel
5th May 2005
The country's 150,000 users of liquefied petroleum gas (LPG) could be paying too much for their fuel, according to the Competition Commission.
Just 4 companies supply over 90% of LPG users, who are mainly rural customers in areas where there is no mains gas supply.
The commission found that competition may be ineffective as only 0.5% of users switched supplier in 2003, mainly because the tanks used to store the fuel are usually owned by the supplier and arranging a replacement tank is expensive.
While the commission found no evidence of price collusion, it found that the level of competition was unsatisfactory and is likely to demand reform to make switching of suppliers easier and cheaper.
Read More: Money Guardian
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