NI 'pays more' at petrol pumps

Northern Ireland motorists pay more for their petrol at the pumps than the rest of the UK, according to a survey.

Figures published on Tuesday from fleet and fuel management company ARVAL PHH reveal that, on average, a litre of unleaded petrol costs 80.2p in the province.

Belfast has come out as the most expensive town to get a fill of unleaded at 79.91p a litre on average, compared to 77.59p in Southend, Essex.

By area rather than by town, the cheapest petrol can be found in Cleveland and Tyne and Wear, in north east England (77p per litre), while the most expensive area is in the north of Scotland, where pump prices are as high as 87.6p per litre.

The real problem is the duty differential between north and south and that is where the real problem lies

Thomas Palmer
Retailers' spokesman

It will not be good news for petrol retailers in Northern Ireland who are trying to compete with fuel prices across the border in the Irish Republic, which are as low as 55p for a litre of unleaded.

Transport costs

Although petrol deliveries to the province have increased in recent months, many motorists still consider it worth their while to travel to fill their tanks.

Thomas Palmer of the Northern Ireland Petrol Retailers' Association said transportation costs accounted for the difference in the cost of fuel compared to the rest of the UK.

Speaking to BBC News Online, he said: "If you are buying something at a higher cost of course it is going to make a difference.

"But the real problem is the duty differential between north and south and that is where the real problem lies.

"And that is down to the high excise duty that successive governments have burdened motorists and retailers with."

Mr Palmer suggested that the recent rubber stamping of the Kyoto Agreement on the reduction of harmful emissions into the atmosphere could lead to an increase in fuel duty in the Irish Republic.

"Break-point"

During June, the average price for unleaded fuel in the UK was 78.91p per litre, with the average price of diesel reaching 77.83p a litre.

Martin Hender, director of fuel at ARVAL PHH, said: "Eighty pence a litre is a psychological break-point.

"There was immense pressure on oil companies to keep the price below that point during the general election to avoid a repeat of last year's fuel protests.

"However, the price now is creeping upwards and there has been no relief from the government in terms of a reduced tax burden.

"The Treasury evidently continues to see motorists as cash cows, despite the harm these fuel prices are having on British businesses," Mr Hender said.