Ministers to blame for high fuel prices, says competition watchdog Robert Halfon, the Conservative MP for Harlow, said it was "disappointing" that the watchdog has decided not to hold a full inquiry. The RAC urged the OFT to "reconsider the decision" and said motorists view UK fuel prices as a form of "day-light robbery." Mr Halfon said that families across the country are "crushing families across the country." "It is disappointing that they will not hold a full inquiry," Mr Halfon said. For example, they admit that there is a problem with poor competition in many towns, such as Harlow - which keeps prices high at the pump - but they are not taking action. The OFT review investigated whether petrol and diesel prices reacted appropriately when crude oil prices dropped. It also questioned whether supermarkets or big oil companies were behaving in ways that made it more difficult for independent retailers to compete with them. Who bears greatest responsibility for the high price of fuel? The review would also consider whether there is a lack of competition between fuel retailers in some remote communities. The report concluded that price rises have been driven by tax rises and rising oil prices. It conceded that motorway fuel is too expensive and called on stations to warn drivers about the high prices. However it found "very little evidence" that retailers are failing to pass on any drops in the wholesale fuel prices to consumers. Mr Halfon added: "Whatever the OFT say, high prices at the pump are crushing families across Britain. Oil companies bear responsibility as well as the Government. Conservatives in Government have made huge efforts to keep fuel duty down, but it is now a toxic tax. Britain has the highest rate of diesel tax in Europe. That is not competitive, and it is bad for jobs and growth. I hope that the Government will continue its record of cutting fuel duty to keep prices down, and put pressure on the oil companies to ease the burden on motorists. RAC technical director David Bizley said: "We're extremely disappointed to hear the Office of Fair Trading will not be launching a full-scale review of petrol and diesel pricing in the UK. We have campaigned long and hard for greater price transparency and will continue to do so until this is recognised as a serious issue. It is a great shame the OFT has not taken this opportunity to instigate a full investigation into this issue which many motorists view as day-light robbery. We strongly urge the OFT to reconsider the decision. "Rising fuel costs cripple households" spending power and serve to stifle economic recovery so it is vital the market operates in a manner that is fair to consumers and business." Speaking in the House of Lords this week, Baroness Verma said that reports of another round of petrol price increases were "worrying." She said: "Perhaps we should look - I was going to say at how we make it easier for consumers not to be ripped off at the petrol pump, but I shall not - at how we can encourage retailers to pass down a drop in price if it comes through the crude oil route.