Fuel costs

By Julie Sinclair

31st August 2007

Small petrol stations are going to be wiped out by a fierce new supermarket fuel price war. Tough competition from stores such as Asda has slashed pump prices to 91.9 pence a litre for unleaded.

And this week, the Petrol Retailers Association watchdog group (PRA) warned of the impact on smaller garages. Latest figures from oil industry analyst Catalist show 150 retailers have closed this year. That leaves 9,500 forecourts in the UK – the lowest number since 1912. But the PRA predicts the situation will “get worse”.

Its boss Ray Holloway said: “A boom in supermarket forecourts has made fuel retailing a very unprofitable business. The Government needs to step in. Motorists are already noticing gaps in availability. But the situation could become critical if closures continue at recent rates.”

Asda is currently at the top of the UK fuel price league. While its offer is fixed nationwide, reports from Scotland confirm that’s not the case with Tesco. According to the Inverness Courier, there are differences in price of up to 4p per litre in local Tescos as stores try to match Asda prices.