Petrol prices are set to drop all over city

SPE­CIAL RE­PORT: Some re­lief for mo­torists... but it won’t last

The Peterborough Evening Telegraph - - Front Page - By MATTHEW REVILLE matthew.reville@pe­ter­bor­oughto­day.co.uk @ET_REVILLE

RE­LIEVED mo­torists are ex­pected to make the most of a price war that could see fuel prices drop in garages all over the city.

Fore­courts and garages in Peter­bor­ough are ex­pected to fol­low Mor­risons’ move last night to cut its petrol prices by two pence a litre.

This lat­est drop means that prices at its fore­court has come down by seven pence over the last month.

Mark Todd, a na­tional spokesman for Mor­risons, said: “Af­ter see­ing con­tin­ued re­duc­tions in the price of oil we are tak­ing the op­por­tu­nity to bring down prices at the petrol pump.”

The cheap­est fuel price found by The Evening Tele­graph yes­ter­day was at The Horsey Fill­ing Sta­tion, where it cost 135.8p a litre for un­leaded and 141.8p a litre for diesel.

In­dus­try ex­perts have sug­gested that Mor­risons’ decision could spark off a price war if the other large su­per­mar­ket garages fol­low its lead.

John Bridge, chief ex­ec­u­tive of Peter­bor­ough Cham­ber of Com­merce, warned that the dip in fuel prices could be short-lived.

He said: “It is dif­fi­cult to un­der­stand the logic of the ups and downs of petrol prices ex­cept that they seem to go up much quicker than they come down.

“This pe­riod of fall­ing prices will prob­a­bly be short-lived as the Gov­ern­ment is to raise tax of fuel by three pence per litre in Au­gust.

“We are urg­ing the Gov­ern­ment to scrap this tax in­crease. Any­thing that eases the pres­sure on peo­ple and busi­nesses is wel­come.

“It is al­ways the mo­torist who ends up pay­ing and we would wel­come a re­duc­tion in the cost of petrol.”

He added that if the Gov­ern­ment truly be­lieved that the econ­omy was key, min­is­ters needed to pro­vide the mech­a­nism and en­vi­ron­ment in which it can thrive.

The threat of strike ac­tion from tanker driv­ers in April saw mo­torists fear­ing petrol pumps could run dry and queu­ing to fill up their tanks.

The spike in de­mand saw some garages driv­ing their prices up as they came close to run­ning out of fuel.

With the threat of strike ac­tion now over, prices are rapidly re­turn­ing to pre­vi­ous lev­els, and have dropped.

That has iron­i­cally led to mar­ket ex­perts pre­dict­ing an­other spike in de­mand.

How­ever, di­rec­tors of ser­vice sta­tions are urg­ing peo­ple not to buy in bulk even if the price drops con­sid­er­ably.

Wood­grange Ser­vices Sta­tion, a Jet Garage in Lin­coln Road, Wer­ring­ton, was charg­ing 137.9p a litre for un­leaded and 143.9p a litre for diesel yes­ter­day.

Ca­van Driscoll, the garage’s di­rec­tor, said: “If the price started to come down peo­ple would start to buy it more again.

“Our next de­liv­ery is not un­til Satur­day, so our cost won’t go down un­til then, even if Mor­risons and the other su­per­mar­kets drop their prices.

“If we go down by two pence we would be los­ing money. But if the prices in the area go down, we will drop down as well at the week­end.”

Ac­cord­ing to www.petrol­prices.com, the high­est prices in Peter­bor­ough yes­ter­day were 144.9p a litre for un­leaded and 147.9p a litre for diesel.

The low­est prices it recorded were 135.9p a litre for un­leaded and 141.9p a litre for diesel.

Na­tion­ally, the av­er­age un­leaded petrol price hit a record high last month of 142.48p a litre for un­leaded and 147.88p for diesel.

An AA spokesman said the prices are still too high. He said: “We are still only talk­ing about small drops af­ter a large in­crease in price.

“The record na­tional av­er­age high was 142.68 pence, and now the price is at 138.31 pence. Even if ev­ery other garage drops prices by two pence, that will still be too high.

“Rather than drop­ping four to six pence, they should be drop­ping at least 10 pence. It is a small drop com­pared to the rise we saw.

“But the mes­sage would be to def­i­nitely not panic buy just be­cause it is a cou­ple of pence cheaper. Luck­ily, I think peo­ple have more sense than that and I don’t think there will be an un­man­age­able rush for it.”

The price drop is also good news for haulage com­pa­nies, whose clients had been forced to pay more be­cause of the in­crease in charge for driv­ers to fill their ve­hi­cles.

Si­mon Brett, man­ag­ing di­rec­tor at Brett’s Trans­port in Guy­hirn, said: “We ab­so­lutely wel­come the price drop. We buy from a whole­saler but we have seen it go down as well.

“We were pay­ing up to 117p a litre with­out VAT but now it’s down to 111p.”

price drop: Driv­ers fill­ing up at The Horsey Fill­ing Sta­tion, in Whit­tle­sey Road, Stan­ground, Peter­bor­ough.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.