Deputy claims his survey proves fuel price rip-off

A STATES member is standing by his claim that petrol prices in Guernsey are a rip-off. Mike Torode has carried out his own survey which he said proved that Guernsey people were being overcharged.

He said that it showed that the price of petrol was at least 20p per litre more expensive than in the UK once duty had been removed. Deputy Torode hopes that fuel will be included in a review being carried out on behalf of Commerce and Employment into the viability of setting up a competition law.

'I believe that a competition law should encompass a lot of other things besides who owns a supermarket,' he said.

'It should include fuel prices, not just motoring fuel, but coal and gas, as we are paying a lot more for those too than people in the UK.'

Treasury minister Deputy Lyndon Trott backed Deputy Torode when he made his claim at the December Budget meeting.

'I don't make such claims lightly and I had done my homework,' said Deputy Torode.

He accepted that the cost of getting fuel to Jersey 'States survey' added 3p to a litre, but harbour dues there were the highest of any British port so by implication import to Guernsey should be a little less.

'My UK figures are based on the presumption that they don't have distribution charges but obviously they must have,' he said.

He said those were obtained from 'run-of-the-mill' garages and not places such as Tesco or Asda where he believed petrol could be bought for up to 10p per litre cheaper still.

Fuel Supplies retail manager Allan Lawson said the politicians were making sweeping statements which were unfair to retailers and wholesalers and comparisons with the UK market were not like-for-like.

The average UK outlet pumped 5m. litres per year while one site in Guernsey pumped only 200,000. The average one in Guernsey sold about 900,000 litres.

Local sites had a higher margin because they did not have the volume and the cost of doing business in Guernsey was higher than in the UK.

Guernsey Petroleum Distributors, the island's Esso importer, which supplies five sites, also defended itself against any suggestion of profiteering.

'Our prices are competitive and reflect movements in the international prices of petrol and diesel and the $/£ exchange rate. They also reflect the higher costs of supplying the island, like small ships and road tankers,' said Esso UK spokesman David Eglinton.

He said Jersey's States had conducted several reviews into the supply of petroleum products there, the latest of which had concluded that wholesalers were supplying fuel on a competitive basis.

Total also insisted it was doing nothing wrong.

It said it was committed to providing a quality service and competitive price.

It recently redeveloped its Vale depot to meet new standards and ensure continuity of supply.

'This investment shows our long-term commitment to Guernsey in what continues to be a competitive and challenging marketplace,' said Timothy Shepherd, general manager of Total Channel Islands.

Deputy Torode said that if the wholesalers were absolving themselves, were they blaming excessive charging on the retailers?

He had been unable to determine the balance as people had refused to tell him, saying it was business confidentiality.'

Deputy Torode said he had not taken up an invitation from Guernsey Motor Trades' Association president Dave Beausire to look at his the books of his business, Le Mont Saint Garage.

He said Mr Beausire would not have known that he had been going away soon after the Budget debate and by the time he returned, the matter had gone quiet.