Fuel for thought as independents slash prices

Local petrol stations were selling fuel for close to no profit to avoid hitting the dreaded £2 mark at the height of the fuel price crisis over the past month, we can reveal.

As the Russian invasion of Ukraine and the dropping value of the pound-to-the-dollar pushed fuel prices up, one local independent fuel seller told MyWelshpool that “no-one wanted to be the first to hit £2 so were selling it for what we were buying it for”.

Paul Harding, from Hardings Sheds & Garden Supplies near Guilsfield (right), is leading the price drop with the area’s cheapest fuel and yesterday H. Ballard & Sons Motors in Welshpool (below right) also slashed their prices.

The price of diesel at Hardings was 173.9 for unleaded and 189.9 for diesel, but elsewhere, prices remain high, particularly at the supermarket pumps.

“Without doubt, some businesses are holding their prices and not passing on the drop to the customer which is not fair, they are taking the mick to be honest,” said Paul Harding.

“The margins have been so tight lately that they are probably trying to make some money back as the price drops, but people are really struggling with their household bills so we should all be playing our part to help.

“People have been good to us and remained loyal, so it is only right that we pass on the lower prices of fuel as soon as they become available. We want to look after our customers.”

Mr Harding said that the lower prices have also improved footfall to the shop which he says can compensate for the tight margins they are making on fuel.

He explained that the government takes around 47% of every tank load in taxes and that both the government and the oil companies were making a “phenomenal amount of money” from the high prices.

As the crisis deepened, all eyes were on which local garage would break the £2 barrier first, but Mr Harding explained why that never happened.

“No one wanted to be the first,” he said. “We were all trying to buy as cheap as we could but in the end, we were selling at the price we were buying at and making little or no money.”

Mr Harding can’t promise that the price will continue to drop as he buys his fuel every six-seven days direct from Texaco so it is dependent on the market price at the time of purchase.

“It is so volatile that we can’t tell, but what we won’t be doing is penalising families and will continue to try and sell at the best price we can.”