REGULATORS have been urged to investigate claims of a heating oil monopoly operating in the region.

MPs have called on the Office of Fair Trading (OFT) to examine the kerosene market in the North-East and North Yorkshire, following months of price hikes and allegations of profiteering.

An investigation by The Northern Echo has revealed that although many of the oil suppliers in the region appear to be operating as independent companies, they are actually owned by a single firm – GB Oils Ltd, of Cheshire.

GB Oils is, in turn, owned by Irish business services group DCC Plc.

DCC also owns a number of oil price comparison websites, including boilerjuice.com The website yesterday quoted a price of 65.95p to deliver 1,000 litres to a DL8 address, while an independent supplier gave a price of 55.47p.

In recent months, oil users have seen prices rise from about 40p to more than 70p a litre.

North West Durham MP Pat Glass has written to the OFT asking it to investigate.

She said: “This appears to be blatant profiteering.”

Thirsk and Malton MP Anne McIntosh has also raised questions with Conservative colleagues.

Sedgefield MP Phil Wilson said he had been contacted by a number of constituents, adding: “If there’s any whiff of a monopoly, it needs to be examined.”

In response, DCC said GB Oils only had 14 per cent of the oil distribution market and had about 200 competitors across the country.

A spokesman said: “GB Oils is certainly not approaching a position of market dominance in Britain, nor indeed does GB Oils have market dominance in the North-East.

“The fact that the oil distribution market is highly competitive is evidenced by the low margins in the industry.”

A spokeswoman for the OFT said: “We are actively monitoring the heating oil market and we have a range of powers at our disposal.”

Oil firms in the region

THE companies owned by GB Oils include Bayford Oil, which has several depots in the region; WH Bowe, of Tunstall, near Catterick; F Peart and Company, of Hartlepool; CPL Petroleum, of Ripon, North Yorkshire; Charter Fuels, of Bishop Auckland; Brett Fuels, which has several offices in the region, including Newton Aycliffe, County Durham; Noble Fuels, of Hutton Rudby, North Yorkshire, and W Eves and Co, of Whitby.