- Author, Felicity Evans
- Role, Money Editor
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For mobile hairdresser Eleni Lewis, fuel costs are always at the top of her list when planning orders.
The 28-year-old from Pontyates in Carmarthenshire said her £200 monthly fuel bill was impacting her business.
“I try to keep my workload as close to the same level as possible so as not to use too much fuel on the road,” she says.
Although average prices in Wales are currently lower than in the UK, they are higher than in Northern Ireland, where fuel prices are consistently among the cheapest in the UK.
The automobile association RAC said the Northern Ireland example showed that fuel “can be sold cheaper than it is”.
However, the fuel retailers association said its members were facing higher operating costs and investments in new technologies for electric vehicles.
Ms Lewis said she was monitoring price changes at gas stations in her area.
“For me there are two local suppliers that seem quite competitive in terms of price, so I try to take the cheapest one.”
In Wales, average prices for the week beginning June 17 were 144 pence per litre for petrol and 148 pence for diesel. However, according to the RAC, prices in Northern Ireland were around 141 pence for petrol and 142 pence for diesel.
Simon Williams, head of policy at the RAC, said: “If everyone is paying the same wholesale price, we simply cannot understand why motorists are not paying prices similar to those in Northern Ireland.”
Mr Williams pointed out that there are more independent petrol stations in Northern Ireland than in other parts of the United Kingdom.
“There seems to be far better competition between independent retailers and other retailers, and that leads to cheaper prices.”
The competition authority recently expressed “particular concern” that persistently high margins – the difference between the wholesale price retailers pay for fuel and the higher price at which they sell it to customers – indicated “weakened competition” and “do not bode well for motorists”.
Some customers at a workshop near Caernarfon said they get reasonable prices there.
Steven Pugh travels from Llanrwst to refuel.
“I visit my sister and fill up because it’s cheaper here than anywhere else. That’s why I always fill up there now and not on the other side.”
Yvonne Rowlands-Jones said the high prices were a burden, especially for people in rural communities.
“Petrol and diesel prices have continued to rise, especially if you live in the countryside and have to drive to Caernarfon or Bangor to shop,” she said.
But Moira, from Beddgelert, said the prices were “ridiculous”.
“In other countries it is much cheaper,” she said.
“My brother just came here from Canada and I think we pay almost double what he pays.”
Following the invasion of Ukraine, fuel prices soared and the UK government cut fuel duty by 5 pence per litre in March 2022, a cut that was extended until 2025.
However, the RAC claims that some retailers have not fully passed on this price reduction.
A fuel search system supported by a new monitoring body was recommended, allowing motorists to access prices instantly.
The British government has accepted the recommendations and they are expected to come into force later this year.
The Petrol Retailers Association had previously stated that there had been “significant increases in operating costs, reduced fuel volumes following the pandemic and significant investment required to transition to a low-carbon transport system”.
“These factors mean that fuel retailers need to earn more from fuel sales to stay in business and invest for the future,” it said.
Plaid Cymru and the Liberal Democrats have called for an extension of the Rural Fuel Duty Relief Scheme, which offers retailers discounts to pass on to their customers in 21 regions across the UK.
The scheme does not currently apply across Wales, but Plaid said: “Living in rural areas can be more expensive than in the city and services are less readily available.”
“We will continue to call for a doubling of the tax relief to 10p per litre. This is essential to ensure fairness and ambition for rural communities.”
The Liberal Democrats said “a real rescue plan” was needed to support rural communities struggling with “outrageously high pump prices”.
The party is calling for a doubling of the number of areas eligible for the programme, including some parts of Wales.
Reform said it supported the extension of the Rural Fuel Duty Relief Scheme to parts of Wales and was committed to transparency and fairness in fuel pricing.
They also proposed “cutting fuel duty by 20 pence per litre, which would directly benefit motorists by reducing costs at the pump.”
The Conservatives said they were determined to “implement our Pumpwatch programme, which forces petrol stations to share live information about their prices, thereby increasing competition in the market and reducing prices for motorists at the pump”.
They added: “As for fuel tax, our record speaks for itself: we have frozen fuel tax in every budget since 2010.”
Labour said: “After 14 years of chaos under the Conservatives, motorists are crying out for change.
“A UK Labour government would tackle rising car insurance costs by asking regulators to crack down on the causes of price increases.”