Fuel prices across the country have continued to steadily fall over the past month.
Data from the RAC's 'Fuel Watch' states the average price for a litre of petrol at the end of March was 146.5p, a drop of just over 1p in the month - this signifies the lowest prices since January 2022. Compare this to early November 2022, when petrol prices reached a high of 166p per litre. It means motorists are now saving an average of 20p per litre, or, £11 on the typical 55-litre family car.
Despite this, people looking for the cheapest fuel prices may have noticed that prices vary depending on where you fill up. A quick search on petrolprices.com reveals that different areas have different prices, even when they're both being supplied by the same supermarket.
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For example, when searching for Morrisons prices across Greater Manchester, you will find that one forecourt in Dukinfield is charging 132.7p, while in Eccles it costs 138.7p. A Sainsbury's forecourt in Denton costs 133.9p while in Wigan it charges 142.9p.
Similarly, a Tesco Extra in Gorton is listed at 135.9p while the same store in Failsworth is 137.9p. Many may be wondering why this is the case and if it's entirely fair.
Why does fuel cost more in some areas compared to others?
Generally, the price of fuel varies depending on the wholesale price of crude oil, but this is not the only factor. Suppliers often examine the demand for fuel and will adjust their prices accordingly to the competition in any one area.
A Tesco spokesperson said: “We regularly monitor fuel prices throughout a local area to ensure we’re providing competitive prices for our customers.”
A Morrisons spokesperson said: "Morrisons operates a local pricing policy on fuel. This is standard for petrol retailers as is noted in the Competition and Markets Authority Road Fuel Review published on 8 July 2022: 'Competition between road fuel retailers principally takes place at a local level. In particular, retailers typically set prices based on what others in their local area are charging with some aiming to match or undercut their rivals.'
"The number and breadth of operators in the market (supermarkets, oil-company owned retailers, independents and smaller independents), all with different buying models and overheads, creates variations in price between local markets that can sometimes be quite wide as the comparison between Dukinfield and Eccles illustrates."
A Sainsbury's spokesperson said: "Pump prices differ throughout the UK (including outlets owned by the same company) for a range of reasons, including the cost of fuel, VAT, fuel duty and the dynamics of local competition.
“We work hard to ensure our petrol stations remain competitive within their local area. For instance, we run promotions on fuel, including bonus Nectar points and money off per litre when spending a qualifying amount in our stores.”
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