Oil companies ‘are dictating fuel costs’ to the forecourts

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The boss of a new petrol station says distribution costs have dictated the price of fuel on his forecourt, following criticism over a lack of competition in a north Northumberland market town.

Paul Abbott, who is a director of Northumberland Fuel Services Ltd, spoke out after motorists complained his recently-opened BP station in Alnwick was charging exactly the same as the neighbouring Co-op Total garage.

Mr Abbott says this is down to the oil company’s delivery charges.

He said: “Fuel prices move on a daily basis, it is mainly delivery costs from the oil companies that dictate the price in the area it is delivered to, usually the further away you are from terminals the higher the cost will be.

“As far as supermarket fuel goes, they do sell their fuel cheaper, however, it is a well-known fact within the fuel industry that the fuel is of a far inferior quality than the four big brands, BP, Esso, Shell and Total.

Mr Abbott added that 80p in every litre is tax.