THE rising price of fuel has become a concern for motorists – but why is one filling station charging so much more than a neighbouring forecourt just a short distance away?
Tolladine Service Station (TSS) in Tolladine Road, Worcester was charging 199.9p per litre for diesel on Friday, 10p more than Valero on the same road which was charging 189.9p per litre.
Indeed, according to the Petrol Prices website which tracks prices at the pumps, TSS has the highest fuel prices in the city, higher than the likes of Tesco, Sainsbury’s, Esso and BP forecourts as motorists face a postcode lottery at the pumps.
The difference was even more stark for unleaded – 175.9p per litre at TSS, 20p more per litre than Valero which asked motorists to pay 155.9p per litre at the pumps.
EXPLAINED: Tolladine Service Station charges more for petrol and diesel than a garage a short distance away (Image: Newsquest)
Prices are rising everywhere with the market highly volatile because of the US war with Iran.
The US military is poised to blockade all Iranian ports today, creating still more uncertainty.
However, much of the volatility is connected not to retail policies but to oil prices which are outside the control of retailers.
Meanwhile, industry leaders argue that more than half of what customers pay is dictated by fuel duty, a fixed charge per litre, and the 20 per cent rate of VAT which comes on top of fuel and duty.
Motorway services typically charge much more due to captive demand while independents may charge more if they have lower volume or higher operating costs or where there is less competition, such as in rural areas.
The manager of Tolladine Service Station says despite higher prices at the pumps than some competitors, independents are not profiteering and it is the Government that takes the bulk of their money. “We can never compete with the hypermarkets. But we have very loyal customers,” she said.
CONTRAST: Valero was cheaper for fuel than Tolladine Service Station on Friday (Image: Newsquest)
“There’s nothing I can do about it” said Leza Stephenson, manager of Tolladine Service Station, referring to the prices.
She has worked at TSS for the last 51 years, explaining that she bought the diesel for 196.6p on Wednesday morning and was making just 3p per litre on diesel and 4p on unleaded.
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“People should know it isn’t the petrol forecourts making the money.
“People must understand the Government takes 50 to 70 per cent in tax on a single litre,” said Ms Stephenson, describing TSS as the only independent garage in the three counties buying fuel on the open market.
She added: “There’s nothing in it for us in profit. It isn’t the filling stations making the profit. It’s the Government.”
