As oil and gas prices continue to plunge, Chancellor George Osborne has launched a Treasury investigation into whether large companies are passing on the benefits to the general public by reducing the cost of Freddos.
“We need to urgently look at this problem,” said Osborne. “With oil dipping below $50 a barrel, the cost of production of Freddos is certain to be coming down. The shipping costs, the electricity to melt the chocolate, the wrapper – it’s all oil-based. It’s just common sense that those savings must be passed on to hard-working British families.”
“Initially we believe a reduction to 18p would be sensible, with our projections showing that 15p would be possible within a month. Hopefully this oil crisis will continue even longer and we can get back down to 2006 prices. Think of that – just 10p a Freddo!”
However, so far Cadbury’s has refused to cut Freddo prices. “This is a volatile global market,” said CEO Joan Farley, defending the decision. “We buy our chocolate well in advance to ensure security of supply and to smooth out price volatility, so movements in wholesale oil prices do not feed through immediately to retail prices.”
But Government sources were adamant that Cadbury’s were under strong pressure to reduce Freddo prices.
“So far our intervention has worked with fuel,” explained Treasury source Annette Wilkins. “Pump prices are coming down. Now we’re going after the big boys: retro frog-shaped chocolate bars. We’re going to be watching Cadbury’s like a hawk.”
Ed Miliband has hit out at the Government’s response as ‘too little, too late’, claiming that he first raised the issue of high Freddo prices over a year ago.