Why is Your Taxi Costing More
Northern Ireland’s motorists are spending over £300 a year extra just to keep their cars filled up with diesel, it has been claimed.
The revelation comes after it emerged that the cost of a litre has shot up 32.2p (from 97.4p to 129.6p) in forecourts across the province, now making diesel 11% dearer for drivers than petrol.
Figures from the AA reveal that while average diesel prices have risen from 116.5p to 129.6p a litre in just 12 months, their petrol equivalent have seen a lesser hike of just 19.9p (from 96.6p to 116.5p).
The data also shows that the difference in price per litre for drivers between the two fuels was just 0.8p last year, compared to a staggering 13p this year.
Speaking to the Belfast Telegraph, AA Public Affairs spokesman Luke Bosdet put the price differential – which, he said, looks likely to stay – down to supply and demand.
“The fact of the matter is that many, many countries are now demanding diesel and there simply isn’t enough supply to meet that demand, therefore the price of diesel compared to petrol has soared,” Mr Bosdet said.
However, he also acknowledged that drivers here are paying more than those in the UK where the average fuel price difference is a little lower, at 11.41p.
“It is 1.5p more expensive for motorists in Northern Ireland in terms of the petrol diesel price differential, but that goes back to the local pricing issue,” he said.
“People in rural communities are generally most affected and what it means is that drivers in Northern Ireland pay an extra £15 a year for diesel compared to their UK counterparts on the basis of the price differential today.”
Mr Bosdett added: “The good news is that they are going to be increasing diesel producing infrastructure at a new unit at a refinery in Humberside over the next couple of years and that will actually help balance diesel production with petrol production.”
The fuel price discrepancies that exist between Northern Ireland and the UK, as well as in different locations across the province, have been consistently exposed by this newspaper.
And indeed the latest figures underline the importance of the ‘Price Watch’ campaign being run by the Belfast Telegraph to help ease the cash burden facing households during the current economic crisis.
New data supplied by the Consumer Council indicates that a family filling a 50 litre diesel car will face an increased bill of £6.15 a week, £26.65 a month or £319.80 a year, based on the year-on-year average price increase between June/September 2007 and 2008.
In the past year all|Northern Ireland drivers have been badly hit by soaring fuel costs, which many believe go up faster than they come down
Similarly, a taxi driver filling a 50 litre tank three times a week will have to fork out an extra £18.45 each week, £79.95 per month, or £959.40 per year just to stay on the road.
The fair price watchdog also indicated that a haulier using 1,000 litres of diesel each week will see an increased bill of £123.00 per week, £533.00 per month or £6396.00 annually.
Consumer Council chief executive Eleanor Gill last night said that consumers here need to know why they are paying so much more for diesel than petrol.
“This time last year the average price of a litre of petrol and diesel was almost neck and neck, and now there is a massive 13 pence difference between the two,” she said.
“Consumers need to know why. In the past year all Northern Ireland drivers have been badly hit by soaring fuel costs, which many believe go up faster than they come down.
“However, our analysis clearly shows that diesel drivers are taking the biggest hit.
“While it is bad enough that petrol drivers are having to find an extra £9.95 to fill their tank than they did last year, diesel drivers are paying a staggering £16.80 more at our supermarket and independent filling stations.
“Many households use diesel to run their family cars and many businesses depend on it to make a living such as taxi drivers or hauliers. All diesel drivers need to be assured that they are getting a fair and competitive deal.
“Fuel wholesalers and retailers need to justify why this enormous and sudden divergence in prices has occurred over the last year, otherwise consumers can only conclude that they are being ripped-off when it comes to buying diesel.”
Ms Gill advised motorists to remain vigilant when it comes to fuel costs and vowed to challenge unfair practices on behalf of consumers.
“No matter where they fill up, consumers need to be price-aware when it comes to petrol and diesel,” she said.
“If this gap in petrol and diesel prices continues, drivers may need to consider whether driving a diesel vehicle is the best value choice for them, their family and their business.
“These are challenging times for consumers who are having to make their money go further than ever before,” she added.
“The Consumer Council is committed to ensuring that all businesses are providing consumers with open, transparent and timely information to allow them to make the best choices when buying goods and services. We will challenge all circumstances where this does not occur on behalf of consumers.”
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