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Britain’s biggest supermarkets are ripping off motorists with their local pricing policies for fuel, according to the country’s largest motoring organisation.
The AA last night urged government ministers to launch an investigation into the “postcode lottery”.
Edmund King, AA president, said that because supermarkets such as Tesco only pledge to offer the cheapest petrol price in the local area, the prices they charge can vary dramatically according to the level of competition.
He said that only towns with an Asda, which operates a national pricing policy, appear to be sure of getting the cheapest fuel on the market.
The AA fears that the huge variations in price mean that motorists in the south of England are effectively helping to subsidise cheaper prices in the north where there is a far greater number of Asda stores.
While Tesco charges 106.9p per litre for unleaded in Bury, Lancashire, where there is an Asda, it charges 7p more in Waltham Abbey, London - where the nearest Asda to is seven miles away. J Sainsbury charges 106.9p per litre in Dundee, but 4p more in Wembley.
Mr King said: “Is it fair competition that one chain is charging a price in one town but charging more just down the road in another?
“Drivers ask does it really cost more for a tanker to deliver the same fuel to a town just a few miles down the road? If there’s one price for a Mars Bar, why can’t there be one for fuel?”
He added: “It’s becoming a major issue and we are hearing from more and more MPs who have postbags that are bursting with letters from angry motorists.
“The government need to look at this and end what is little more than a post code lottery.”
Petrol prices have soared in the past year on the back of the rising oil price in yet another strain on household budgets.
The Bank of England claims the rising cost of fuel is a key reason why the official inflation rate is at its highest level for 16 years.
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That's rich coming from the AA! Their breakdown insurance is about £80 but there is another £20 payable to a sister company for admin of some sort. So this would be like Tesco saying the petrol is 50p per litre, but there is a charge of another 50p per litre to get it out the pump! Hyprocrites!
JJ Spader, London,
Ive just filled up at Tesco in Chester price £1.069 pl but Tesco are running a 5p per litre discount if you spend £50.00 or more in store,so ended up paying £1.019 pl must be the cheapest price in the UK.
Dave, mold, UK
I measured the volume of "1 gallon" at Sainsburys, Tesco and Shell in Swindon... Tesco gives you more by 2 percent!!
The others were short-selling by a bit.
Pedro, Stratford,
What utter trash! There are more people and more businesses in the South, thus the retailers control the demand with higher prices. If you check the prices in other cities you'll find similarly high prices. Besides, the oil companies are awash with cash anyway.
Claire, Edinburgh,
We only have one filling station in our town. Owned by Waitrose, it could charge exhorbitant prices but it is always on a par with Asda prices, even though the nearest supermarket is over 4 miles away.
Well done Waitrose, your fair play is much appreciated!
Jeff, Portishead, Somerset
J.Daniels, Portishead, somerset
ASDA has national pricing for food and fuel
Rob, Yorks,
All businesses do the same. Stop whining and get on with life.
if a price in your area really bothers you and there is somewhere better 7 miles away, write a letter to you local garage and say you will stop using them until prices are lower. If everyone does so prices will soon fall.
Neil Murphy, Cromer,
You want high prices? - check out your local Texaco. The one on the A23 at Dale Hill outside Brighton has the higest prices in Sussex. At one time Dale Hill was charging £1.38 for diesel.
Go figure!
Shell is by far the best and luckily I have one 1/4 mile from my door! Currently £1.19
Tony, Brighton,
To Shane, Wellington, New Zealand.
Scotland is self sufficient when you include oil and by all rules we do own the North Sea area, there is actually a pseudo country created so England can take the revenue. The oil we pump is sent abroad as it is VG quality and as you say the petrol is imported.
Joe, Edinburgh, Scotland
Well ... no-one is forced to tank at ASDA. There's Shell, BP, and a slew of others.
And as to "the government need to look into this", that's ridiculous. Quit whining for "The Government" at every turn, do your research and just fill up somewhere else, ok?
Golodh, London,
I am beginning to believe I must be seeing things. I am not aware of a uniform price of petrol or diesel from any supplier whether it be BP, Shell, Esso, Jet or the supermarkets. Why pick on the supermarkets? My local Shell station I was told price matches Sainsburys!
John B, Coventry, UK
Petrol is just a commodity - in the supermarket environment its the same as bread, milk etc. Have the AA - or anyone else looked at the regional pricing differentials for other supermarket staples?
Isn't it just supply and demand?...... or are we arguing for a fairer society?
Nicola, derby,
What I want to know is why deisel in my area is 14p per litre more than petrol. In some towns it looks as if supermarkets charge the same ( high) price where there is competition, much the same as do for other products they sell.
Ray Cobbett, Emsworth. Hampshire,
Shane in NZ, You keep on believing that somehow Scotland is a massive financial drain on England. It'll only be another 2 or 3 years before we all find out who is supporting who. I see the London based financial sector is doing very well at present -NOT
PS: Re your 3rd point- Buy a map
Bill, Aberdeen, Scotland
There isn't one price for a mars bar. It like petrol depends on the supermarket. Petrol at supermarkets is as I understand it is being discounted hence the price variations.
Porter, Hull,
The Asda in Dundee has to charge that if it wants to compete locally as the Shell garage 100 yards down the road still manages to offer at 1p per litre cheaper than Asda.
Dave Scott, Dundee, UK
When the difference in duty betwen unleaded and diesel is, I believe,only 2 or 3p can someone explain why, at the pumps,it is 11 to 14p?
In the Sandwell, West Mids area supermarkets (Sainsbury)are charging 107.9 for u/l and 120.9 for diesel UP 1p since 2 weeks ago.
A.Williams, Cradley Heath,
What short memories some people have. This is the reason for Tesco undercutting independent garages until they went out of business and for buying up land where effective competition could be stifled.
BJ, London,
Your the ones who choose to live in the south, you can not have everything, you already get 90% of the tax and 100% of the good jobs, there has to be some disadvantage, also dont forget price is driven by demand, 7 million people live in london alone, 7 times that of the next biggest city up here.
MR W Jones, Liverpool, England
I started following a few tips which has increased my fuel economy by 80 miles for a full tank. I do not use the accelerator on a downhill which is plentiful in UK - in London and Motorways. I ensure that I maintain an even speed and do not accelerate in spurts. This is with a Toyota Avensis.
Jagadish, Bromley, UK
I've just invented a car that will run 1,000 miles on a lire of water. Just wait, all those GREEDY Welsh garages and grillionaire Arabs will soon only have Sheep and Sand! hahahahha. Now, off to the patent office before it closes.
Rob Bain, Derby,
Er, isn't this what they call capitalism? In case the AA isn't familiar with the concept, it deals with charging what the market will bear to make a profit, not act as an extension to the social services.
Bill, Ramsey,
Labor supports 'anything goes' rip off perpetrated by supermarket oligopolies - that is 'third way socialism' - pretent to be socialist but act capitalist. Simple law prohibiting regional differentiation would solve this problem
Heinz Geyer, London,
When I visit my daughter in Swindon I always try to make sure that I buy fuel there because it is usually 5 to 7 pence a litre cheaper there than in the east midlands
J W, Market Harborough,
Shane,
This article is is refering to the North of England not the North of Britain (Scotland). So climb down from your tall horse. Tesco is very strong in Scotland.
Hayden, Forfar,
I'm from Manchester but now live in London. When I visit Manchester I stock up on everything from food, to washing powder, and always fill my tank. Cheapest petrol is in Morrisons - not many of those down south. I also get my car serviced up there too - labour can be £20 per hour cheaper.
Caroline, London,
When did Waltham Abbey move to London?
Judy, Basingstoke, UK
Having recently moved south and still travelling north, i find the price of diesel is predominantly cheaper in southern petrol stations. Supermarkets consistently offer better value than the likes of Shell and Esso, so why all the fuss?
Carl, Welwyn,
What winds me up is that Tesco are quick to put prices up, but extremely slow to reduce them ( a week at our local store!).
They deserve to be boycotted.
In Luxembourg its the same price everywhere. Why not here?
Profit and greed, that's why....
Phil Lloyd, Heath Hayes, England
Southerners have been subsudising Northerners one way or another for years - what's new?
John Bowman, Sarlat, France
All petrol stations sell fuel at different prices in different places, not just the supermarkets, it's called 'competition'.
David Leslie, Perth, Scotland
Tesco spokesman talking absolute rubbish...Tesco price at Sidcup just a week ago 114.9p, BP and Shell just over a mile down the road 109.9p. This week the price at Tesco 111.9p, still 109.9p at Shell.
Mark, London,
Simple - supermarkets now have an effective monopoly on fuel as they have driven the independents out of business - the OFT needs to get involved and make them divest at least 50% of their petrol stations. The lack of competition is demonstrated by the 5p off if you spend £50 offers around.
Richard, Newton Abbot,
The government need to look at this and end what is little more than a post code lottery. You're kidding me? The petrol belongs to Tesco and the price they choose to sell it at is their business and no-one elses, least of all our Government's. If the AA don't like it, they are as free to lobby and bring to bear market forces to persuade Tesco to reduce prices as Tesco are to charge whatever they like for their own petrol!
Lee, Sunderland, UK
NM Glasgow - the oil is in British waters off Scotland and the oil was only accessible with British tax payers money (90% English if you want to get national!).
Dan, London, UK
The "South" (read London and the home counties), supports the "North" for just about everything, from petrol, to food prices, and not forgetting that vast amounts of tax generated in the south is sent north. The south of England heavily subsidises the north in every way, and has for decades.
Matt, High Wycombe, Bucks
The only rip-off here is that petrol companies are keeping pump prices high whilst the oil price dropped.
We are all paying 10 to 15p per litre too much which is going directly into the oil companies super-profit fund.
Bill, Harrogate,
We live in Doncaster but were on holiday in Torbay in August this year when the petrol prices started to fall and we were paying £1.08 at both Morrisons and Sainsburys throughout the 3 weeks that we were away. On returning home the prices were exactly the same as we had been paying 'down south'.
Norman, Doncaster, England
Not according to Petrolprices.com
in Gayton, Merseyside it's 108.9. Cheapest in In Kensington, London is 107.9.
Slow day at the AA?
Phill, The Wirral, England
try living in wales they charged me 124 per litre of diesel in one of the poorest parts of wales because as explained by the lady behind the counter they have no competition
in cardiff it was 119 per liter sad they charge what they can when they can
m gaskell, cardiff, wales
I have used a local Shell petrol station for several years. I discovered that it was, perhaps surprisingly, the cheapest petrol in the area. And the quality is very high. Never had any rough running from Shell.
Chris Palmer, Southampton, Hampshire
to NM of Glasgow, what you say would be fine if (1) Scotland wasn't already a huge non-self sufficient tax burden on England, (2) the oil actually did only come from the North Sea, (3) that the North Sea somehow constitutes Scottish territorial waters
Shane, Wellington, New Zealand
4p difference between Dundee and Wembley? Considering that so much of the oil is from Scottish waters surely the real surprise is that the difference isn't more?
NM, Glasgow, Scotland
"Motoring organisation says that pricing variations mean drivers in south help subsidise cheaper petrol prices in north"
This fact is true of every consumer productin the UK from mortgages to sausages ... and has been for years.
Save the research funds and state the obvious up front.
Edwin, Bucharest,
Isn't everything more expensive darn sarf?
Anyway, I only get petrol at Shell. They're not only cheap, but the quality of their petrol is excellent.
M. R., Stockport, UK