PETROL prices at the pumps in Jersey are now more expensive than in some parts of the UK.
Islander Chris Falloon bought unleaded petrol in Exeter last week at 72.9p per litre and noticed that the advertised price at Landes du Marche garage in St Peter was 73.9p per litre when he came back to the Island.In a letter to the JEP, he asked: ‘Can someone tell me, is it the retailer or the government which is ripping us off?’Duty charged in Jersey, according to the Island’s budget figures, on a litre of unleaded petrol is now just under 37p, meaning a gross margin of about 37p.
In the UK, on a retail price of 75p per litre, duty and taxes - again according to the Jersey budget figures - would have totalled about 57p, leaving a gross margin of 18p.However, retailers contend that prices being advertised at the pumps are not a true reflection of what they are charging.Peter Tabb, spokesman for the Jersey Motor Trades Federation (JMTF), said that petrol had been cheaper in some parts of the UK since the beginning of January when the 5p Jersey budget duty increase was passed on.He added that many retailers were offering discounts to customers even though the advertised pump price was in excess of the price that people were actually buying at.Mr Tabb said that the JMTF had not published any price recommendation for a more than a year in the interests of free competition.There are incentive discounts available on prices at pumps, and the managing director of Roberts Garages, Colin Roberts, said that if Islanders took full advantage of their recently launched card promotion they would pay the equivalent of 67p per litre.
However, to achieve that would mean spending £200 per month or more on the card.Retailers argue that costs in Jersey are considerably higher, with expensive property rents as well as higher wages.
They also say that they have to pay the margins of wholesalers before setting their own prices.They stress, too, that in the UK many garages are actually owned by the wholesalers.
As a result, the ‘middle man’ is cut out.A retailer said that some hypermarkets in the UK could buy fuel for lower prices than retailers.
‘In some cases this is base fuel, which can have an adverse effect on the life of an engine in the long term,’ he said.
Article posted on 15th March, 2004 - 12.00am
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