North petrol prices among UK highest

Mar 25 2008 by Sam Wood, The Journal

BUSINESS leaders and hauliers reacted with anger last night after it emerged that drivers in the North East are paying some of the highest fuel prices in the country.

New figures show motorists in Newcastle, Durham and parts of Northumberland are paying the highest fuel prices compared to cities in Northern England and Scotland, and among the highest across the UK.

The Journal can reveal that a litre of unleaded petrol in Newcastle costs on average 106p, while in Morpeth the price is 107.2p per litre and in Durham 107.1p. This compares with other major cities such as Leeds (105.4p), York (105.9p), Glasgow (105.2p) and Edinburgh at (104.9p) per litre. In London the price is 107.7p, only slightly more expensive than Durham.

And diesel prices are also high, with Durham petrol stations charging on average 114.6p a litre, which is more expensive than the capital, and Newcastle 114p, higher than in most other cities.

The figures come from website petrolprices.com, which compares prices from nearly 10,000 petrol forecourts across the country.

The UK Petroleum Industry Association, which represents the nine biggest oil companies in Britain, said forecourt prices are influenced by a number of factors, including Government duty and tax, sourcing oil and the cost and profit of the wholesaler. However, the other variable factor is the filling stations’ owners or operators, which leads to the regional differences.

Ross Smith, head of policy at the North East Chamber of Commerce, said last night that business in the region were feeling the brunt of soaring prices.

“The high price of fuel has definitely had a big impact on business and it is a cost which all businesses have to pay,” said Mr Smith. “It is impossible for businesses to insulate themselves from it.

“The situation for business in the North East is made worse because of the fact we are so far from other potential cities and markets.”

And Simon Chapman, chief economist for the Freight Transport Association, said: “We are in uncharted waters at the moment. There has never been such a continuous rise in the oil price and at the moment there is no sign it will come down in the short term.

“Prices for road hauliers have been rising 8% above inflation for the last few years and the North East is particularly vulnerable to oil price rises because the region is so reliant on road transport.”

BP spokeswoman Shiela Wilson said: “The price of fuel at the pumps is a complicated matter. There is variation because we look at the competition in the area. The cost of delivery is also taken into account.

And prices at some stations are not set by us. Dealers can set their own prices at stations they own.”

A spokesman for TOTAL said: “We do not have a national price at the pumps. We set our prices regionally but we always try and keep them as competitive as we can.”

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