Why are fuel prices higher in Wales than Northern Ireland? – BBC news

Image caption, Mobile hairdresser Eleni Lewis says fuel prices are taking a large chunk of her turnover

  • Author, Felicity Evans
  • Role, Money Editor

For mobile hairdresser Eleni Lewis, fuel costs are always a priority when planning jobs.

The 28-year-old from Pontyates in Carmarthenshire said her £200-a-month fuel spend is impacting the business.

“I try to keep my workload in the same area as much as possible to avoid over-traveling with fuel,” she said.

Although average prices in Wales are currently lower than in Britain, they are higher than in Northern Ireland, which consistently ranks among the cheapest fuel prices in Britain.

The automotive body RAC said the example of Northern Ireland shows that fuel “can be sold cheaper than it is”.

But the body representing fuel retailers said its members were facing higher operating costs and had to invest in new electric vehicle technology.

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Ms. Lewis said she keeps an eye on changing prices at gas stations in her area.

“There are two local companies to me that seem quite competitive price-wise, so I try to go for the cheapest one.”

Average prices in Wales in the week beginning June 17 were 144 pence per liter for petrol and 148 pence for diesel, but the RAC said prices in Northern Ireland were around 141 pence for petrol and 142 pence for diesel.

Simon Williams, head of policy at the RAC, said: “If everyone is paying the same wholesale price, we simply cannot understand why drivers are not paying prices closer to those in Northern Ireland.”

Mr Williams pointed out that there are more independent forecourts in Northern Ireland than in the other countries in Great Britain.

“There seems to be much better competition between independent retailers and other retailers and this is leading to lower prices.”

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The Competition Authority recently said it was “particularly concerned” that persistently high margins – the difference between the wholesale price retailers pay for fuel and the higher price at which they sell it to customers – “suggested that competition was weakening and are not a good sign for drivers. ”.

Some customers at a garage near Caernarfon said they got reasonable prices there.

Steven Pugh travels from Llanrwst to refuel.

“I go to visit my sister and get gas because it’s cheaper here than anywhere else. That’s why I now do all my refueling instead of on that side.”

Yvonne Rowlands-Jones said high prices were particularly hard on people in rural communities.

“The price of petrol and diesel has only gone up, especially if you live in the countryside and have to go to Caernarfon or Bangor to do your shopping,” she said.

Image caption, Yvonne Rowlands-Jones says high fuel prices are particularly hard on rural communities

But Beddgelert’s Moira said the prices were “ridiculous”.

“It is much cheaper in other countries,” she said.

“My brother just came over from Canada and I think we pay almost double what he pays.”

Fuel prices soared after the invasion of Ukraine and the British government took a 5p per liter cut on fuel duty in March 2022, a cut that has been extended until 2025.

But the RAC claims some retailers have not fully passed on the reduction.

It recommended a fuel search program, backed by a new regulatory body, to give drivers direct access to prices.

The UK government has accepted the recommendations and they will be published later this year.

The Petrol Retailers Association previously said there had been “significant increases in operating costs, reduced fuel volumes following the pandemic and the substantial investments required to transition to a low-carbon transport system”.

“These factors mean that fuel retailers need to earn more from fuel sales to stay in business and invest in the future,” the report said.

Plaid Cymru and the Liberal Democrats have called for an extension of the Rural Fuel Duty Relief Scheme, which offers price discounts to retailers that they pass on to customers in 21 parts of the UK.

Currently the scheme does not apply anywhere in Wales, but Plaid said: “Living in rural areas can cost more than living in urban areas, with services less easily available.

“We will continue to call for the support program to be doubled to 10 cents per litre. This is essential to ensure fairness and ambition for rural communities.”

The Liberal Democrats said “a real rescue plan” was needed to support rural communities facing “excessive pump prices”.

The party is calling for a doubling of the number of areas eligible for the scheme, including some parts of Wales.

Reform said they supported the extension of the Rural Fuel Duty Relief Scheme to parts of Wales and were committed to ensuring transparency and fairness in fuel prices.

They also proposed “reducing fuel taxes by 20 cents per liter, which will directly benefit drivers by reducing costs at the pump.”

The Conservatives said they were committed to “delivering our Pumpwatch program which will force petrol retailers to share live information about their prices, boosting market competition and driving down prices for drivers at the pump”.

They added: “On fuel duty, our results speak for themselves; we have frozen fuel taxes for every budget since 2010.”

Labor said: “After fourteen years of Conservative chaos, motorists are crying out for change.

“A British Labor government would tackle the rising costs of car insurance by calling on regulators to crack down on the causes of price rises.”

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