Garages say rip-off claim is 'all rubbish'

PETROL retailers have rejected allegations that they are ripping off motorists. The trade hit back after an independent report published yesterday said islanders were being overcharged by up to 30%.

It claimed forecourts were making an average of 18p a litre compared to 7p in Jersey and less than 5p in the UK.

'This report is absolute rubbish,' said Le Mont Saint Garage owner and Guernsey Motor Trades Association chairman Dave Beausire.

'The way this man has manipulated his figures - I don't know where he got them from.

'Most retailers in Guernsey have a margin of around 13p per litre, while in Jersey it is around 12p.

'The States has spent £20,000 when I could have told them in three minutes for nothing.'

The investigation, commissioned by Commerce and Employment, carried out 'comprehensive surveys' of pump prices at island outlets throughout October and November.

But other service stations also dismissed the findings as nonsense. San Lorenzo Garage proprietor Ian Bowtle said: 'I'd like to know where these people get this information from.

'We haven't been requested for any - so where did they dream up these prices from?'

Leale's garage owner Frank Leale, who has been running the pumps there for 54 years, said he was marking up at around 11p.

Retailers also questioned the manner in which the information had been reported.

'Never have we worked in percentage increases or decreases in fuel sales,' said Mr Beausire, who has been on the GMTA committee for 12 years.

'It's called playing with figures. By talking in percentages, you're not giving a true picture of what is happening.'

San Lorenzo was yesterday selling unleaded at 65.8p per litre and Le Mont Saint at 65.4p, exactly 13p more than their respective purchase prices. Mr Bowtle was also offering a 10% cash discount, meaning the garage made just 6.5p per litre.

The drive to cut petrol prices comes months before motor tax is transferred onto fuel.

Retailers have been warned by Commerce and Employment not to add a margin to the duty increases when the change comes into effect on 1 January.

Mr Beausire said the GMTA had no intention of doing anything of the sort.

'We have recommended nobody goes profiteering on this,' he said.

He added that he had invited deputies to examine his retail and net figures more than a year ago, to show how close to break-even a small independent fuel site is. But the offer had never been accepted.

'I think politicians are interested in the price,' he said.

'They want to see a reduction and they are using it as an excuse to implement more duty in the future.

'In the UK over 70% of the price of a litre of fuel is tax of some description and I think this is where Guernsey is heading.'