UK: Petrol Retailers Association Warning on Rising Fuel Prices

Nationally, the average price of a litre of unleaded petrol is 111.8p, and 113.7p for diesel.  But experts from the Petrol Retailers Association (PRA) are predicting prices could rocket to 120-125ppl by the second half of the year - which comes on top of the AA rating East Anglia, along with London, the top spot for the most expensive prices at the pump.

On April 1, the government is set to increase fuel duty in line with inflation and add an extra 1p per litre Brian Madderson, chairman of the PRA, said 2009 was a tough year for drivers but 2010 is set to be tougher. He said: “The predicted 10ppl rise does not take into consideration any increase in the world oil price which is also a possibility and could add another 3ppl to 5ppl to service station inflation. We will be actively lobbying government to minimise the tax increases to protect vulnerable rural filling stations and maintain the momentum of any economic recovery. Brace yourselves for higher fuel costs ahead.”

Alongside the increase in fuel prices, independent petrol service station owners say they face being crippled by the rising amount in business rates they are paying out. They claim the rates, which are reassessed every five years - the latest assessment coming into play from April this year - are being calculated unfairly as petrol filling stations are being rated on turnover, not on square footage like every other retailer in the country.

One member of the Independent Petrol Retailers Association, Andrew Lawrence, who operates several service stations across the county, has written to Norwich North MP Chloe Smith, Mid Norfolk MP Keith Simpson and the chancellor Alistair Darling asking them to take action.  Concern is growing for the viability of smaller independent operators competing with supermarket fuel retailers at a time of recession.

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