Rural petrol prices on the rise again

RURAL motorists are feeling the pinch after fuel prices started to rise again.



Average UK petrol prices went back above 130p a litre at the end of April and continue to hover around that level, according to the AA.


But a war where supermarkets have pitted vouchers against rock-bottom pump prices still leaves the cheapest petrol in many big towns and cities.


Urban fuel prices are at year lows of just under 126p, according to May's AA Fuel Price Report.


The price gap between small rural towns where major supermarket competition is less fierce and cheaper major towns has started to grow again to 4p a litre.


Although not as bad as last-year's 5p or 6p excesses, the £2-a-tank difference for small cars and £2.80 for a Mondeo-sized vehicle is making a difference, says the AA.


More drivers are likely to re-route their trips to take in cheaper forecourts, although a 2p-a-litre rise in the wholesale price of petrol since early March may explain the price rise.


But with the north-west European wholesale price of petrol dropping back below $1000 a tonne and the pound worth nearly $1.70, the pressure on retailers to put up prices should fall away.


If that happens but rural town prices fail to return to where they were earlier this year, the AA says resident drivers will know whether local retailers have again set their sights on inflated margins.


Across the UK, the average pump price of petrol dipped back below 130p to reach 129.92p a litre - compared to 129.74p in mid April.


Diesel, at 136.17p a litre in mid May, has barely budged from last month's 136.26p a litre.


AA president Edmund King suggested that supermarkets had held their fire on pump price increases in cities and major towns because they faced worse sales figures when fuel was factored in.


But he added: "There are signs that some of them and other retailers are getting price-trigger happy again in rural towns."


Mr King said: "If pump prices stay higher while costs continue to fall back, rural town drivers will be tempted to look elsewhere for cheaper fuel."

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