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ACM: mandatory sharing of fuel price data enhances transparency, and can save consumers money

Summary

  • ACM recommends imposing a requirement on gas stations to share up-to-date fuel price data.
  • Free access offers scope for new applications, such as consumer apps in which fuel prices are integrated.
  • Free price information will lead to reduce search costs for refueling, and can save consumers money.

The Netherlands Authority for Consumers and Markets (ACM) is in favor of mandating gas stations (or petrol stations) to make up-to-date fuel prices available for free to information services such as route planner apps and price-comparison websites. That would enable drivers to find the most economical gas station in their area. This has been included in recommendations of ACM to the Ministry of Economic Affairs and Climate (EZK).

ACM’s Monitor on fuel prices (in Dutch) reveals that consumers are able to save substantially by making informed choices for gas stations. At the same time, access to up-to-date fuel prices is not equally available for each driver. A requirement where all gas stations in real time make available their up-to-date price data to price comparison websites and route planner apps offers drivers more opportunities to save money. Information services are able to integrate this data into their apps. That will enable consumers to make better choices among gas stations, which will boost competition and help reduce prices.

Current situation and obstacles

At the request of the Ministry of Economic Affairs and Climate (EZK), ACM has assessed whether mandating gas stations to share up-to-date, complete fuel price data enhances price transparency for consumers. As part of that assessment, experiences in other countries have also been taken into account. At the moment, route planner apps and price-comparison websites in the Netherlands primarily base their price estimates on transaction data of business fuel cards, real-world observations of drivers, and prices on gas station websites. The data quality of these sources is not 100 percent, and is expected to go down further as business drivers drive more electric vehicles. In Germany, where gas stations are already required to share their price data, such a requirement resulted in a wide range of comparison services and integration in popular navigation apps.

Effects on prices and competition

International research has shown that mandatory data-sharing often leads to lower fuel prices, but the effects vary per country. In Germany, the downward effect on prices has been estimated at approximately 2 to 3 eurocents per liter of gasoline. In the Netherlands, a possible saving of 1 eurocent per liter would save all consumers approximately 59 million euros per year.

Recommendations for implementation

ACM recommends that a central, independent organization collect the price data, and make this data exclusively available to certified information services. This approach reduces barriers to entry for new services, and stimulates diversity in the offerings for consumers. Data should be made available in real time and free of charge in order to enhance public accessibility. The implementation thereof can be executed by a government agency or by a private organization after a tender process, with clear requirements for data quality and access.

See also