'No reason' for some fuel prices to remain so high as more garages reduce costs

Asda in Shrewsbury was reported to be charging 178.7p for unleaded on Monday morning, 4p per litre less than other supermarket forecourts in the county - including other Asda branches in Telford.

The supermarket giant knocked down its price after the RAC called on them and others to cut pump prices to reflect the drop of wholesale costs. However, their latest prices are still significantly higher than the cheapest forecourts in Shropshire, which are independents.

On the day the RAC reported the national average for unleaded and diesel to be 187p and 195p respectively, the best price in Shropshire was 164.9p for petrol and 181.9p for diesel - 14p and 8p cheaper respectively than the best supermarket price in the county.

A spokesman for the family-run Nesscliffe Service Station, just north of Shrewsbury, said their wholesale cost for unleaded had come down around 20p in recent weeks and 15p for diesel, and they have been able to pass those savings on to drivers.

"Over the last two-three weeks the wholesale cost has come down week on week so we have been passing that saving onto the consumers and keep it fairer for everyone," he said, adding that he was glad to be able to reduce costs at a time when all other costs are going up.

On Friday the RAC believed retailers should be charging nearer 174p for a litre of unleaded, something those at Nesscliffe, who were charging 169.9p for petrol, agreed with.

"You can even argue that based on prices that have come through, you can charge 170p. There's no reason some are keeping it up as high as they are. It's not independents keeping prices high.

"It makes a pleasant change for independents to lead the price drop," he added, before suggesting that prices could creep down even further later in the week.

It's understood that prices can vary due to the way retailers purchase their fuel; some purchase on a daily rate, while others buy petrol and diesel based on an average price of the previous week, or even longer, which can delay their ability to reduce prices.

Independent retailers have seen an increase in trade in recent weeks, with queues reported as some filling stations as motorists look for the cheapest prices.

Victoria Garage in Newport Road, Whitchurch is one of those, and was charging 165.9 for unleaded and 181.9 for diesel on Monday.

Director Alan Ball said: "The price has com down again over the weekend. A lot of what we are doing is just passing it on."

Mr Ball said customers had been happy about the prices since his garage

Cheaper prices have traditionally been the domain of supermarkets, however many of them are still charging near the UK average, leading the motoring group to urge retailers, particularly supermarkets, to cut prices which have been "falling for six straight weeks now, as a result of the lower oil price".

RAC fuel spokesman Simon Williams said: "Certainly, the days of fuel ‘price wars’ – where the supermarkets simultaneously cut their prices and made a big deal of doing so – appear to be well and truly over. Instead, supermarkets seem to prefer to battle over grocery prices which, while helpful, is ignoring the huge sums households are having to fork out for fuel to keep their cars running.

“Last month, the cost of filling a typical 55-litre family-sized car with petrol rose by a record £9.12, with diesel just behind at £8.59. For a car that does 40 miles to the gallon, that means it costs a driver around 22p for every mile they drive – up from around 16p at the start of the year. Drivers are desperate for some relief at the pumps yet, with a few notable exceptions, few retailers seem to be willing to price their fuel fairly.

“Drivers who fill up at supermarket forecourts have every right to feel let down that they are being charged well over the odds for petrol and diesel right now."

Industry representatives said larger retailers are slower to pass on price rises and cuts as they buy fuel further in advance, and cited the Competition and Markets Authority report which noted that the reduction in refining capacity appears to have driven up the 'refining spread' - the gap between the price of crude oil entering refineries and the wholesale price leaving them.

The CMA report also noted that "the fuel duty cut appears to have been implemented, with the largest fuel retailers doing so immediately and others more gradually".

Andrew Opie, Director of Food & Sustainability at the British Retail Consortium, added: “Retailers understand the cost pressures facing motorists and will do everything they can to offer the best value-for-money across petrol and diesel forecourts, passing on cost reductions as they feed through the supply chain.”

The Shropshire Star asked a number of supermarkets about its prices.

A Morrisons spokesperson said: "In the UK petrol prices vary from town to town and even neighbourhood to neighbourhood and we will always strive to be competitive in each local area. Occasionally this can mean price differences between different areas open up. We continually review our prices and will look to reduce this difference as soon as we can."

Sainsbury's, Asda and Tesco were all contacted for comment.

Cheapest petrol around Shropshire

1. Texaco Grindley Brook Garage, Chester Road, Whitchurch - 164.9p

2. Griffiths Garage, High Street, Leintwardine - 165.9p

3. Shell Victoria Garage, Newport Road, Whitchurch - 165.9p

4. Essar, Holyhead Road, Nesscliffe Service Station - 169.9p

5. Esso RSS, Sycamore View, Prees Heath - 169.9p

6. Texaco Hardings Garage, A490, Guilsfield, Welshpool - 173.9p

7. Texaco Ellesmere Mere Motors, Church Street, Ellesmere - 174.9p

8. Esso Vyrnwyside Garage, Llansantffraid - 174.9p

9. Texaco Robinson and Young Service Station, Wem - 175.9p

10. Esso Whitchurch Bypass Service Station, Wrexham Road, Whitchurch - 177.9p

Cheapest diesel around Shropshire

1. Texaco Grindley Brook Garage, Chester Road, Whitchurch - 181.9p

2. Griffiths Garage, High Street, Leintwardine - 181.9p

3. Shell Victoria Garage, Newport Road, Whitchurch - 181.9p

4. Shawbury Service Station, Main Road, Shawbury - 185.9p

5. Texaco Ellesmere Mere Motors, Church Street, Ellesmere - 186.9p

6. Rix, Brook Street, Welshpool - 186.9p

7. Esso RSS, Sycamore View, Prees Heath - 187.9p

8. Esso Whitchurch Bypass Service Station, Wrexham Road, Whitchurch - 187.9p

9. Essar, Holyhead Road, Nesscliffe Service Station - 188.9p

10. Texaco Robinson and Young Service Station, Wem - 188.9p

Cheapest supermarket petrol prices around Shropshire

1. Asda, Shrewsbury - 178.7p

2. Morrisons, Shrewsbury - 182.7p

3. Sainsbury's, Shrewsbury - 182.9p

4. Asda, Telford - 183.7p

5. Asda, Donnington - 183.7p

6. Sainsbury's, Telford - 184.9p

7. Morrisons, Wellington - 186.9p

8. Tesco, Telford - 186.9p

Cheapest supermarket diesel prices around Shropshire

1. Asda, Shrewsbury - 189.7p

2. Asda, Telford - 192.7p

3. Asda, Donnington - 192.7p

4. Sainsbury's, Shrewsbury - 192.9p

5. Sainsbury's, Telford - 192.9p

6. Morrisons, Shrewsbury - 194.7p

7. Morrisons, Wellington - 195.9p

8. Tesco, Telford - 195.9p

Prices according to petrol-prices.com on Monday morning.