Shake-up ahead for motorway fuel bills
One supplier slashes its prices – will others follow?
“EXPLOITATIVE” fuel prices at motorway filling stations could soon become a thing of the past, after the UK’s largest motorway services’ operator announced a significant cut in the cost of petrol and diesel at a number of its stations.
Moto, which runs more than 60 services across the UK, is trialling an eight penceper-litre cut at three of its sites, a price drop that will make motorway fuel “highly competitive against local petrol stations”. The trial will be expanded to all Motooperated filling stations if it is successful.
Prices for unleaded will be set at 111.9 pence-per-litre, and diesel at 117.9 penceper-litre, at three sites: Frankley services on the M5 near Birmingham; Lancaster services on the M6; and Donington Park services on the M1, near Derby.
Motorway service areas (MSAs) have witnessed a dramatic drop in customer footfall in the wake of coronavirus. April saw traffic across Britain fall to levels not seen since 1955, and while the number of vehicles on our roads has since risen significantly, volumes were still 25 per cent down in June over pre-lockdown levels.
MSA operators have been criticised in the past for having significantly higher fuel prices than those at stations off the motorway. The previous Transport Secretary, Chris Grayling, told the Competition and Markets Authority in 2018 he was “concerned” that the cost of fuel at MSAs “may exploit users in a situation where there is less competition and discourage motorists from stopping when, for safety reasons, they should.”
MSA operators argue the high cost of motorway fuel is due to their unique operating environments, with Moto highlighting at the time that such prices “reflect the complexities of motorway trading, such as round-the-clock opening”.
Announcing its trial, Ken McMeikan, chief executive of Moto (above), said: “Times are tough, and we know from customer insight that motorists want to see their money go as far as possible... We’re doing our part, but we hope the Government can help motorists, too. I have written to [Chancellor] Rishi Sunak, urging him to make an immediate cut to VAT on fuel in line with his recent cut from 20 per cent to 5 per cent for the hospitality industry.”