Consumer Market Study on the functioning of the vehicle fuels market from a consumer perspective Marilena Di Stasi DG SANCO, B1 Consumer Markets ECCG 12/03/2014
Dec 14, 2015
Consumer Market Study on the functioning of the vehicle fuels
market from a consumer perspective
Marilena Di StasiDG SANCO, B1 Consumer Markets
ECCG 12/03/2014
Marilena Di StasiDG SANCO, B1 Consumer Markets
ECCG 12/03/2014
Key points• Rationale Follow up to negative findings of 6th Consumers Market
Scoreboard: ranked 2nd lowest in the goods market; below average on almost all the MPI components: trust, comparability, problems and consumers' expectations.
• Research questions Information to consumers Knowledge of the market Price information, transparency, and competition
Price fuel comparison websites Potentially vulnerable groups
• Recommendations & next steps
What's the best choice?
Is it the right fuel?
Is it the right fuel?
Are fuels compatible
with my car?
Are fuels compatible
with my car?
Research questions Are consumers able to make informed choices
including: understanding information on labels at petrol stations; understanding differences between fuel types; suitability of different fuels for specific vehicles. How to standardise / harmonise labelling-at-the-
pump practices (esp. those with biofuel content e.g. E10 and B7);
Consumer perceptions of sustainability of biofuels compared to fossil fuels (including environmental / sustainability concerns affecting purchasing decisions);
Availability of different fuel and retailer types; Retail prices.
MethodologyThe study and data collection cover 27 Member States, Iceland and Norway. (was carried out before HR
joined) All 29 countries covered through:
• Stakeholder organisations survey• Consumer survey• Price collection • Mystery shopping exercises
Study makes mainly use of data collected in the period 2012-2013.
Information sourcesConsumers most often look for information on vehicle fuels at the
pump.
Consumers are most likely to look for information about vehicle and fuel compatibility at pumps and the vehicle’s operating manual.
Examples of confusing labelling
Look at the
different colours
and names of
the available
fuels.
Look at the
different colours
and names of
the available
fuels.
Is this fuel petrol or diesel? Note black nozzle!
Is this fuel petrol or diesel? Note black nozzle! And
the RON
?
And the RON
?
Price information, transparency and competition
Price differentials between regions:•Motorway prices generally more expensive than those in capital cities and rural regions.
Price differentials between days of the week:•Change by less than 1% between Monday and Friday, but prices can change several times a day.
Price differentials between manned and unmanned stations:•Unmanned stations sell fuels at lower prices than their manned counterparts (except Greece). But supermarket stations by far the cheapest followed by independent and non-major brands.
Price fuel comparison websites
60 comparison websites assessed (only in SI no website identified).Information on the following items should be better listed
•More up-to-date prices
•More help and information selecting correct fuel type
•More reporting on fuel quality norms or comparison test results
•Expanded availability and coverage
•Clearer explanations of environmental issues
•Clearer data sources
•Better accessibility and more information for people with disabilities.
Potentially vulnerable consumers
• Little or no disposable income: More troubled by high prices and price increases. They fill up whenever they can afford it, and report higher financial detriment in case of problems.
• Consumers living in rural areas: less choice and only one type of vehicle-compatible fuel in the area they live: e.g. they buy less branded fuels.
• People with reduced mobility: many stations lack handicap-accessible toilets and many CWs lack search functionality tools.
• Older consumers: reliance on labelling at the pump increases with age (including fuel compatibility with vehicle).
• Consumers who drive old vehicles: experience less problems but also drive less.
• Consumers who buy fuel outside their country of origin: experience less problems but are better educated and more knowledgeable about vehicle fuels. But different language fuel denominations may lead to less certainty in identifying one's most suitable/preferred vehicle fuel type.
Recommendations - Improving consumer conditions
• Improving information provision to facilitate informed decision-making on: regular fuels, biofuels, quality of fuels put in the market, performance of various fuel types; and the quality of information provided on comparison websites;
• Introducing an EU-wide colour-coding scheme for fuel labelling at the pump to indicate on the one hand, regular petrol (green), and on the other regular diesel fuel (black) as is already widely the case;
• Ensuring consumer choice and price competition through vehicle fuel price notification systems and setting up smart mobility portal;
• Addressing consumer problems by improving preventive and enforcement measures;
• Improving services provided to persons with disabilities at petrol stations.
Next steps
Staff Working document to be released during the first half of the year jointly with the study and key
deliverables.
Q&A
Thank [email protected]