Is the higher price of petrol justified?

BBC News reports that the price of petrol has been creeping up steadily since the beginning of 2009 despite the fact that the price of crude oil hase been falling. The average price of a litre of petrol is now 90.48p and diesel 100.74p, analysts Experian Catalist said. This compares to a recent low on 6 January of 85.89p for petrol and 98.06p for diesel. However, the price of crude oil is now 40% lower than the last time petrol cost 90p a litre, back in March 2007, according to the AA. Oil prices have tumbled by more than $110 since July last year. US light, sweet crude is currently trading at about $34 a barrel. Link

What factors, other than the price of crude oil, do you think influence the price of petrol? Do any of these justify the increase in the price of petrol?

Energy supply industry is a 'comfortable oligopoly'

Britain's electricity and gas supply industry is a "comfortable oligopoly" that feels little need to innovate or compete, an industry watchdog told MPs yesterday. Allan Asher, chief executive of Energywatch, said that over the last decade the number of gas and electricity suppliers had fallen from 20 to six, while in some areas only two or three firms competed. "There is a myth that there is vigorous price competition between them [the suppliers]. For the main product they most actively sell - direct debit for dual fuel, gas and electricity - the price difference between the cheapest and most expensive is £30 a year; it's just a few pence a week."

An interesting example of price discrimination was highlighted in that the price that companies charged consumers using pre-payment meters, who are often among the poorest. In some cases, meant they paid far more than customers paying by direct debit. Pre-payment meters should be called "the poor-pay-more meters", he said. Guardian article here.

What features make an industry such as energy supply susceptible to oligopoly?
What could the Competition Commission suggest that would make it more competitive?