Britain would have some of the lowest fuel prices in Europe if ministers had not raised taxes by so much over the past ten years, the Office of Fair Trading (OFT) has found.
The OFT has just published the results of a five-month investigation into the UK fuel market, concluding that there is "no evidence" that the high petrol and diesel prices are caused by bad behaviour within the fuel industry.
The report found that the fuel market not dysfunctional but "working well". It also argues that the supermarkets' growing share of the fuel market has helped keep prices competitive.
In the 10 years between 2003 and 2012, petrol prices increased from 76p per litre (ppl) to 136ppl, while diesel rose from 78ppl to 142ppl. During this time, tax and duties rose by 24ppl and the price of crude oil increased by 33ppl.
The chief executive of the OFT, Clive Maxwell, said: "We recognise that there has been widespread mistrust in how this market is operating.
"However, our analysis suggests that competition is working well, and rises in pump prices over the past decade or so have largely been down to increases in tax and the cost of crude oil."
Unfortunately, while the report states that the fuel industry is not corrupt, it merely confirms a suspicion that most drivers had had for some time: that the chancellor is to blame for Britain's high fuel prices.
